 |   Fri Mar 4, 2005
Update on Queensland Coal Projects
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| | Mr. Ian Rozier, President of Sennen Resources Ltd. (the "Company"), is pleased to provide an update on the possible divestment of the MDL 282 (Middlemount) coal project in Queensland, Australia.
The July 15th, 2004 news release reported that several entities had approached the Company with respect to the advancement of its coal projects and that the Company was "reviewing all its options with respect to how to proceed with the development and/or sale of its coal interests". In the December 2nd, 2004 news release the Company reported that its Australian subsidiary, Ribfield Pty Ltd. ("Ribfield"), had entered into a series of agreements with DJB Coal Pty Ltd ("DJB") whereby DJB would complete feasibility studies and make application for a mining lease on all three deposits within 5 years, and in the event of a divestment of MDL 282 would retain a 50% interest in the proceeds from the sale. DJB contracted Global Asset Resource Exchange Pty Ltd ("GRAX") to solicit offers from prospective bidders for the purchase of MDL 282 and this process was ongoing throughout December 2004 and January 2005.
As of January 24th, 2005 seven offers to purchase MDL 282 had been received. Because of the complexity of several of the bids that involved the evaluation of capped and interpolated royalties, funding conditions of cash bids, approvals by foreign government bodies and reserve banks, and other conditional aspects of the various bids, the review process was not complete until March 2nd, 2005. The Company is bound by confidentiality with respect to the identification of the bidders and the terms and conditions of their respective offers. However, mutually acceptable terms and conditions between Sennen, Ribfield, DJB and short-listed bidders were not reached prior to March 2nd, 2005.
Although the forgoing bid process is complete, nothing prevents the Company from considering updated and/or future offers for any of the three coal properties. The Company will continue to review its options and proceed with the advancement of the projects in order to increase their value and take advantage of the high demand for coal assets as demonstrated by the interest shown in the recent bid process for MDL 282.
For further information contact:
Mr. Ian Rozier, President & CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release. |
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| | You can view the Next News Releases item: Thu Jul 7, 2005, Ernst & Young Appointed as Transaction Advisers for the Sale of Middlemount MDL282
You can view the Previous News Releases item: Wed Mar 2, 2005, Amended Management Discussion and Analysis for the Fiscal Period Ended October 31, 2004
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