 |   Wed Nov 9, 2005
Update on Queensland Coal Projects
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| | Mr. Ian Rozier, President of Sennen Resources Ltd. ("the Company") reports as follows;
A news release dated July 7th 2005 reported that the Company's Australian subsidiary Ribfield Pty Ltd.("Ribfield") had appointed Ernst & Young, Mergers and Acquisitions ("E&Y"), of Perth, Australia as transaction advisers in relation to the sale of the Middlemount (MDL282) coal property ("Middlemount") in Queensland, Australia. As reported, E&Y's engagement was exclusive for a period of three months unless otherwise extended by mutual agreement. The Company has not extended E&Y's term of engagement. However, under the terms of the engagement agreement, should any purchase and sale agreement be concluded between Ribfield and E&Y's clients that were introduced to the project by E&Y during the engagement period and within twelve months of the termination of the Engagement Agreement, under the terms of the Engagement Agreement, Ribfield would pay a Success Fee to E&Y as reported in the July 7th news release.
As a result of the E&Y Sale Process offers have been made to purchase Middlemount. However, the Company is bound by confidentiality with respect to the identification of the bidders and the terms and conditions of their respective offers. The Company can report that it has declined two offers and that at this time no agreements have been entered into. As such, Ribfield and its partner, DJB Coal, are free to pursue alternative options for the sale and/or development of Middlemount.
As reported in a News Release dated March 1st, 2005, the Middlemount, Collingwood and Ownaview coal projects contain significant historical measured and indicated reserves and resources and all three deposits are located in areas with existing open cut and underground coal mines in the Queensland coalfields, an area that has been the subject of massive infrastructure projects. The operating costs of coal mines in Queensland makes them extremely competitive with some of the lowest production costs in the world. As a result, existing coal mines and undeveloped coal deposits in Queensland have been the subject of major expansions, investments and purchases. The Company believes that the appetite for coal assets by South East Asian countries has not yet been satisfied and that the economies of China and India are still expanding at rates which will see parties prepared to invest in and/or acquire resource assets in Australia such as Middlemount, Collingwood and Ownaview, for prices in excess of recent offers made.
The Company has over Cdn$1.8 million in the treasury and all its financial commitments on the Queensland coal projects are being met by the joint venture partner.
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 Nov 16, 2006, AGREEMENT TO SELL INTEREST IN MDL 282 (MIDDLEMOUNT) COAL DEPOSIT FOR AUS $15,000,000.
You can view the Previous News Releases item: Thu Jul 7, 2005, Ernst & Young Appointed as Transaction Advisers for the Sale of Middlemount MDL282
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