Sydney, Australia, Feb 28, 2013 - (ABN Newswire) - The Board of Cuesta Coal Limited (ASX:CQC.AX - News) is pleased to advise that it has completed the Orion Coal Project Acquisition as announced on 12 December 2012.
The acquisition has been settled via a cash payment of $3.2million and the issue of 10,000,000 Convertible Notes. The issue of the Convertible Notes was approved by shareholders at the EGM held on 21 February 2013.
CQC further announced on 22 February 2013 that it had successfully executed a Share Placement Agreement to raise $12m by issuing 66,666,667 new ordinary shares at AU$0.18 per share to the Company's major shareholder, Longluck Investment (Australia) Pty Ltd, a wholly owned subsidiary of Beijing Guoli Energy Investment Co. The placement is subject to Chinese Regulatory, FIRB and Shareholder approval.
The funds will be used to reduce the Convertible Note liability and to fast track the Company's priority development project at Moorlands, located 14km west of the Blair Athol Coal Mine in the Western Bowen Basin in Queensland.
About Cuesta Coal Limited:
Cuesta Coal Limited (ASX:CQC.AX - News) listed on the Australian Stock Exchange on the 4th of May 2012 raising $20 million to find an aggressive 2 year exploration, mine scoping and feasibility study program on four key project areas in the Queensland Coal Basins.
Cuesta has assembled a diverse portfolio of thermal and coking coal exploration prospects within the Bowen, Surat and Galilee basins, the company's core projects are well situated geographically with over 11,000km2 of exploration ground in total.
Cuesta's balanced portfolio consists of a pipeline of projects ranging from advanced exploration requiring resource definition drilling, to conceptual opportunities requiring scout drilling. The projects are located in close proximity to current and future planned infrastructure.
Cuesta Coal Limited T: +61-2-9284-5900 F: +61-2-9284-5999 E: firstname.lastname@example.org WWW: www.cuestacoal.com.au
Cuesta Coal Limited
Copyright (C) 2013 ABN Newswire. All rights reserved.