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Hold off on China offer, Carabella tells shareholders

Hold off on China offer, Carabella tells shareholders

Photo by Bloomberg

5th December 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The directors of ASX-listed Carabella Resources on Thursday told shareholders to hold off on making a decision regarding an off-market takeover offer from China Kingho Energy Group.

The Chinese firm, which already holds an 11% shareholding in Carabella, would offer shareholders 42c a piece for the Carabella shares.

The company said that the unsolicited offer was currently incomplete, indicative and nonbinding. It was also subject to a number of conditions, including a due diligence investigation.

The board was looking to clarify a number of matters before making a consideration on the offer.

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 next year.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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