Australia's Triple Energy Signs Investment Deal Related to its China CSG Project
Australia based Triple Energy (TNP) on Thursday announced signing of an investment deal with Hong Kong‘s natural gas distributor Blue Sky Power Holdings Limited (BSP).
As per the Memorandum of Understanding (MoU), Blue Sky Power will invest up to $6 million into the Australian firm and its coal seam gas project in China
Triple Energy has received payment of a non-refundable exclusivity fee of $200,000, the company said.
“The MoU contemplates that should the transaction proceed, $2 million will be advanced to a TNP subsidiary by way of a loan from BSP followed by a placement of shares in TNP at A$0.005 per share (subject to shareholder approval where necessary) such that BSP’s holding in TNP reaches 19.99%. This shareholding will be subject to a twelve month voluntary escrow period,” Triple Energy said.
The company further informed that a rights issue will be arranged in due course at a price of A$0.006 to raise up to A$6 million.
“This rights issue will be fully underwritten by BSP. The MoU includes the appointment of two Directors to the Board of TNP in due course, with TNP’s senior management team to remain in place,” the company said.
BSP already has a substantial energy portfolio in China and thus TNP’s strategy and coal seam gas project in China is complementary to this business model, Triple Energy said.
TNP’s Chairman, Paul Underwood said, “TNP welcomes this proposal and MoU by BSP. We have been working with BSP for some time and should this transaction proceed, it should see the next two wells drilled in the very near term.”
Triple Energy holds an 80% interest in a Cooperative Joint Venture (known as Aolong Energy (Aolong JV) with LongMay Coal Mining Company, biggest provincially-owned state-owned enterprise in Heilongjiang province. The JV was formed with the objective to de-gas the coals in LongMay’s coal mining operations in the Daqing Coal Basin and has a life of 45 years.
The equity in the CJV with Longmay is as follows;
Triple Energy Ltd* - 80% (Operator)
LongMay Coal Mining Company – 20%