1 March
2019
Altona Energy
plc
("Altona" or the "Company")
Business
Update
Appointment of
Non-Executive Director
Delist from
AIM
Altona (NEX: ANR) is pleased to provide an update to
shareholders following its transition to the NEX Exchange Growth
Market (“NEX”) on 1 February 2019.
The Company’s shares have today delisted from trading on AIM and
now can only be traded on NEX.
The Company’s Executive Director, Qinfu Zhang and Chi Ma, the Board appointed representative of
the Company’s joint venture partner, Sino-Aus Energy Group Ltd,
visited London in early February
to meet with its UK advisers and certain shareholders.
The main purpose for the visit was to discuss a potential new
business opportunity, namely, an investment into a China-based vanadium mining company, as
announced in an RNS on 14 January
2019.
Possible Vanadium Mining
Investment
The Company continues to evaluate an investment into a
significant Chinese vanadium mine, in which Qinfu Zhang is the
beneficial owner of 40%, as announced on 14
January 2019. This investment, should it come to fruition,
would be through a joint venture agreement and could take many
months to reach its conclusion due to the strict laws in
China regarding foreign company
investments.
The main product of the mine is Vanadium Pentoxide
(V2O5) which is currently in very high demand
in many industries, including steel strengthening, energy storage
in industrial batteries, thermal imaging equipment, nano-fibre
applications and as a catalyst in many industrial chemical
reactions.
The Board believes that an investment by Altona into such a
company represents an excellent opportunity for shareholders. The
benefit to the vanadium mining company is that by having a UK-based
joint venture partner, it would be able to sell its product outside
China where the price of vanadium
is currently higher.
The Board is planning a visit to the mine during April.
Arckaringa UCG Project
Altona is committed to the continued investment into its South
Australian mining licences, with a longer-term view to execute its
Underground Coal Gasification (“UCG”) strategy at Arckaringa.
Following the success of its neighbouring mining company, Leigh
Creek Energy, which carried out a sygas test burn in October 2018, with the full support of the South
Australian government, the Company is confident that it can achieve
similar results in the future. The Board is cognisant of the
challenges it faces to succeed in this project, having to obtain
the necessary Petroleum Exploration Licence (“PEL”) and
environmental permits to allow it to commence testing. The Company
believes that income generated from the proposed vanadium
investment would be instrumental in moving the project forward.
Sino-Aus Energy Group Ltd has reiterated its commitment to the
Arckaringa project, where it has promised an investment of approx.
AUD$30 million, should the licences be acquired.
Through its wholly owned Australian subsidiary Arckaringa Energy
Pty Ltd, Altona holds a 100% interest in three exploration licences
covering 1,944 sq. kms in the northern portion of the Permian
Arckaringa Basin in South
Australia including three coal deposits – Westfield
(EL5676), Wintinna (EL5677) and Murloocoppie (EL5678).
Non-Executive Director Appointment
The Company is pleased to announce that Philip Sutherland has rejoined the board as a
Non-Executive Director with immediate effect, to look after the
Company’s interests in Australia.
Mr Sutherland previously had resigned from the board in
December 2018, after deciding he did
not support the strategic direction the previous management team
was taking Altona. Mr Sutherland fully supports the new Board’s
decision to reappraise the UCG project in Australia and the possible investment into the
vanadium mine in China. Further
information on Mr Sutherland, in accordance with paragraph 21,
appendix 1 of the NEX Rules, is found at the end of this
announcement.
A UK-based Non-Executive Chairman is expected to be appointed in
March.
New Financial Team
Altona has appointed Orana Corporate to provide the accounting
and finance function for the Company. In addition, Orana have been
appointed as the Company Secretary.
The Company, in conjunction with Orana, is performing a thorough
review of its historical financial operations during 2018, in order
to be compliant with the rigorous corporate governance measures as
set out by the various UK authorities, and to ensure it can move
forward into 2019 with a clean bill of health. Orana is currently
reviewing the Company’s working capital requirements for the next
12 months in conjunction with the Board.
Qinfu Zhang, Executive Director of Altona, commented, “We
have a great deal of work to focus on during the year, which we
hope will lead to Altona being a profitable and successful company.
Whilst we are evaluating the possible vanadium project and
continuing our progress in South
Australia we wish to reassure shareholders that our focus is
also on strong corporate governance and investor communications.
Whilst both projects will take a long time to come to fruition,
with many issues to overcome, we will provide updates to the market
as often as possible.”
-ends-
For further information, please visit www.altonaenergy.com or
contact:
Altona Energy
plc
Qinfu Zhang, Executive Director |
+44 (0) 7795 168 157 |
Alfred Henry
Corporate Finance Ltd (NEX Corporate Adviser)
Jon Isaacs / Nick Michaels |
+44 (0) 20 3772 0021 |
|
|
Leander (Financial
PR)
Christian Taylor- Wilkinson |
+44 (0) 7795 168 157 |
|
|
Further information on Mr
Sutherland:
Philip George Sutherland, aged
[xx], is or has been in the last five years a director of the
following companies:
Current Directorships |
Directorships in the last 5
years |
Altona Australia
Ltd |
Altona Energy Plc |
Arckaringa Energy Ltd |
|
Arckaringa Coal Chemical Joint
Venture Company Ltd |
|
Save as disclosed above, there is no
additional information relating to Philip
Sutherland which falls to be disclosed pursuant to paragraph
21 of Appendix 1 of the NEX Exchange Growth Market - Rules for
Issuers.
Company Information
Altona is an exploration company focused on the evaluation and
development of its significant coal resource exceeding 7 billion
tonnes (1.3 billion tonnes historic JORC compliant) in the northern
portion of the Permian Arckaringa Basin in South Australia. Through its wholly
owned Australian subsidiary Arckaringa Energy Pty Ltd, Altona holds
a 100% interest in three exploration licences covering 1,944 sq.
kms in the northern portion of the Permian Arckaringa Basin in
South Australia including three
coal deposits – Westfield (EL5676), Wintinna (EL5677) and
Murloocoppie (EL5678). All three deposits lie close to the
Adelaide to Darwin railroad and
the Stuart Highway.
The Company was admitted to trading on AIM on 10 March 2005. A copy of its admission
documents dated 4 March 2005 can be
accessed on its website, www.altonaenergy.com. This website
is where items can be inspected under Rule 75 of the NEX Rules for
Issuers, from 1 February 2019.