Blumont Group to take 13% stake in Australia-listed coal miner

BLUMONT Group has agreed to invest in Australian-listed Celsius Coal for about $6.5 million.

The Singapore-listed company said it signed a conditional agreement on Wednesday to subscribe for 227.3 million new Celsius Coal shares at 2.2 Australian cent a share.

This would give Blumont a 13.1 per cent stake in the existing share capital of Celsius Coal, a metallurgical coal explorer.

Celsius Coal focuses on developing coking and thermal coal deposits in the Kyrgyz Republic. It owns 80 per cent of its Uzgen Basin Coking Coal Project, which cover an established Soviet-era coking coal resource.

The reason for investing in this company, Blumont said, is to identify and seek out new investment opportunities to enhance shareholders' value.

It intends to forge a close working relationship with Celsius Coal to explore potential projects in Central Asia.

Furthermore, the alliance will enable the group to tap into the vast experience and knowledge of the coal miner and its executive chairman Alexander Molyneux in the area of mining industry, it noted.

Mr Molyneux was president and chief executive officer of SouthGobi Resources from 2009 to 2012.

Under his leadership, the company became the largest foreign operator in Mongolia's coal sector.

The company also completed a sovereign wealth fund financing and main board listing on the Toronto Stock Exchange and then subsequently Hong Kong Stock Exchange.

Mr Molyneux left SouthGobi following a takeover by Rio Tinto.

Blumont shares ended unchanged at 40.5 cents.

Register here to get free digital access to The Straits Times until Aug 9, 2015.
Comments