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Carabella directors recommend revised offer

Carabella directors recommend revised offer

Photo by Bloomberg

6th January 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The directors of ASX-listed Carabella Resources have thrown their weight behind a revised offer from a subsidiary of China Kingho Energy Group.

Wealth Mining had initially made a 42c-a-share offer for all the issued shares of Carabella it did not already own. By December 24, Wealth had revised the offer to A$0.455 a share in cash.

Carabella pointed out at the time that the revised offer represented a 128% premium to the closing price of the company’s shares prior to the initial offer in November, and provided shareholders with an attractive cash alternative to waiting for the price of Carabella shares to reflect the potential value of its projects.

Shareholders now had until January 20 to accept the offer, unless the offer period was extended.

In November, Carabella announced a maiden Joint Ore Reserves Committee-compliant reserve of 11-million tonnes at its Bluff coal project, in Queensland.

The company has lodged an environmental authority application for the project, which would be assessed under a six-stage approvals process, with the mining lease application to be processed in parallel.

Carabella was hoping that project approvals would be granted in the first quarter of this year.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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