Churchill Mining gets three separate binding approaches
Thursday, 01 Oct 2009
Churchill Mining Plc confirmed that it has received 3 separate and unconnected non binding approaches, all of which are at various stages. Two of these approaches relate to the possible acquisition of specific projects within Churchill and the third relates to a possible offer for the company as a whole.
It made the statement in response to press speculation and the recent rise in its share price. Churchill was trading up more than 16% in early London deals. It added it will continue discussions with all three of these parties, which may or may not lead to one or more offers for the company or certain of its projects.
The approaches are conditional on due diligence and at this stage there is no certainty that any will progress to completion. Churchill also denied press speculation linking it to BHP Billiton Plc.
Churchill Mining's strategy is to explore and develop mining projects that will leverage off the current appetite for raw commodities which are used in burgeoning steel and energy industries in growing economies. Its main focus is its highly prospective thermal coal project located in the East Kutai Regency of Kalimantan in Indonesia. The company has concluded an Exclusivity Agreement with PT Techno Coal Utama and the JORC compliant resource has been defined as 1.412 billion tonnes. Exploration and resource drilling continue along with scoping and pre feasibility work.
Churchill has also acquired the Sendawar CBM Project in East Kalimantan in Indonesia, which is in a highly prospective area for coal bed methane. Additionally the Company acquired the South Woodie Woodie manganese project in Western Australia however due to the company's focus on Indonesia and the increased prospectivity of the project 80% was sold to Spitfire Resources Ltd.
Churchill's management continues to assess further opportunities in Australia and southern Asia to acquire quality projects in line with the Company's business plan. Churchill is committed to growing shareholder value by becoming a leading minerals explorer and future miner.
