NSW passes legislation to cancel NuCoal licence
PERTH (miningweekly.com) – The share price of ASX-listed junior NuCoal Resources tumbled another 16% on Friday after the New South Wales government passed legislation to cancel the exploration licence over its major asset, the Doyles Creek project.
Earlier this month, NuCoal’s shares fell by 68%, to trade at around A$0.024 a share, after Premier Barry O’Farrell announced his intention to cancel the exploration licence following corruption charges.
The Independent Commission Against Corruption (ICAC) had earlier identified alleged corruption in the award of the Doyles Creek licence to the project’s previous owners, and O’Farrell took the decision to cancel the licence without compensating NuCoal.
The company on Friday expressed its dismay at the state government’s backing of O’Farrell’s decision, saying that the legislation also denied NuCoal the ability to seek compensation, despite ICAC recommending that it should be paid.
“Another feature of the legislation is that it takes from NuCoal all its accumulated exploration data, which was obtained through the expenditure of over A$40-million, and gives the state the right to provide this data to new bidders for the Doyles Creek area when it puts the area back out to tender, as we believe will invariably happen given the quality of the coal resource at Doyles Creek,” said MD Glen Lewis.
In a letter to shareholders, Lewis called the legislation “unjust” and said that the company would review the legislation in detail, and would pursue “all available actions” to protect its rights.
NuCoal’s shares were trading at a low of A$0.020 on Friday.
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