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White Energy Company Limited ( (AU:WEC) ) has provided an announcement.
White Energy has entered a non-binding indicative term sheet to acquire the Lolley No. 1 underground metallurgical coal project in Alabama via the purchase of Essential Global Resources and the Tin Hut Creek coal project in Queensland’s Surat Basin via the acquisition of Oceltip Coal 2. The Lolley project, which includes a coal handling and preparation plant and existing transport infrastructure, is on care and maintenance and is proposed to be recommissioned in stages, with phase one production targeted about 12 months after restart.
Consideration for Essential Global Resources will be paid in White Energy shares valued at about $5 million, subject to escrow and shareholder and regulatory approvals, while Oceltip Coal 2 will be acquired for $4 million cash. A further $1 million in cash or shares may be payable to a historical Tin Hut Creek owner if a mining lease is granted, reflecting contingent value linked to project advancement.
Completion of both acquisitions depends on White Energy successfully raising about $15 million at $0.06 per share, with funds earmarked for acquisitions, project development, corporate purposes and working capital. The company also plans significant board and management changes, including appointing Nathan Tinkler as executive chair and John Canavan as a non-executive director, alongside a large package of performance-based options for Tinkler, signalling a strategic pivot to coal asset development and potentially reshaping governance and incentives for shareholders.
More about White Energy Company Limited
White Energy Company Limited is an Australia-based resources company listed on the ASX and OTC markets, traditionally focused on coal-related assets alongside Australian base and precious metals exploration. The company is now seeking to expand its portfolio through acquisitions in U.S. metallurgical coal and Queensland’s Surat Basin thermal coal, aiming to maintain exposure to coal and broader resource development opportunities.
Average Trading Volume: 70,436
Technical Sentiment Signal: Sell
Current Market Cap: A$18.98M
Learn more about WEC stock on TipRanks’ Stock Analysis page.