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Longluck gains majority stake in Cuesta

13th September 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The remaining shareholders of takeover target Cuesta Coal have until October 4 to accept a takeover offer from shareholder Longluck Investment, or to divest of their shares in the company.

Cuesta and Longluck in July signed a bid implementation agreement, under which Longluck offered to acquire Cuesta shares for a cash consideration of just over 2.4c each.

The offer valued Cuesta at A$18.6-million, and the offer price represented a 69% premium to Cuesta’s one-month volume-weighted average price at the time of the offer.

At the start of the offer, Longluck held a 53.42% shareholding in Cuesta, which has now increased to more than 90%.

Cuesta holds the Moorlands project, in Queensland, which hosts a Joint Ore Reserves Committee-compliant resource of 318-million tonnes, as well as the Eastern Galilee project and the West Emerald project.

Edited by Creamer Media Reporter

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