PERTH (miningweekly.com) – Takeover target Guildford Coal on Thursday told shareholders that its Baruun Noyon Uul (BNU) mine, in Mongolia, would start production following the successful completion of the trial batches of coal.
Previously known as the North pit, BNU forms part of Guildford’s South Gobi project, and has a coal resource of 70.4-million tonnes, which includes an indicated resource of 39.7-million tonnes.
The company executed its first sales contract for the BNU mine in August this year, with the first 8 000 t shipment due for end-users in China.
Guildford said on Thursday that the company was on track to meet the expected coal volumes at BNU, with the mine expected to deliver some 1.19-million tonnes of coal between December 2014 and 2015.
Guildford recently became the takeover target of Singapore-listed Sino Construction, with Sino offering one of its own shares for every 4.5 Guildford shares held.
The takeover followed on from an August transaction, when the two companies reached a a $25-million sales agreement under which Sino Construction would acquire Guildford’s Queensland coal assets. The assets would include the Clyde Park project, as well as the Pentland, Springsure, Hughenden Sunrise, Monto, Sierra and Kolan projects.
Guildford had advised its shareholders to take no action regarding the Sino offer, until the company could compile a formal response.
Meanwhile, Guildford on Thursday also announced the immediate resignation of nonexecutive director Alan Griffiths, due to business commitments, as well as the reappointment of Craig Ransley as acting chairperson, effective immediately.