PERTH (miningweekly.com) – ASX-listed junior Guildford Coal has abandoned its plans to acquire an 80% stake in a large thermal coal project and associated power station project in Mongolia.
The company said on Friday that, following a due diligence process, it had decided not to proceed with the transaction.
Guildford in June signed a memorandum of understanding to acquire the 600 MW mine-mouth coal-fired Tsaidamnuur project, located 15 km from the Trans-Mongolian Railway line, which traverses Mongolia and connects Russia and China.
The project comprised three mining licences, containing a large thermal coal deposit.
Guildford would seek to recover a $2-million fully refundable deposit.