White Energy takes off on moves to acquire US and Australian coal assets

• Proposed transactions to further strategy of maintaining exposure to coal
• Assets in Alabama and Queensland
• Capital raising to support strategic moves

White Energy Company (ASX:WEC) is up more than 48% on news it has entered into a non-binding indicative term sheet to acquire strategic coal assets in the US and Australia.

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The assets are the Lolley No. 1 underground metallurgical coal project in Alabama and the Tin Hut Creek project and associated assets in Queensland’s Surat Basin.

CEO, Greg Sheahan, said the proposed transactions are intended to further White Energy’s strategy of maintaining exposure to coal-related assets and resource development opportunities in addition to its existing Australian base and precious metals exploration interests.

Subject to financing, approvals and restart activities, initial phase one production at the Lolley No. 1 underground metallurgical coal project is targeted within approximately 12 months of recommissioning.

White Energy also proposes to acquire Oceltip Coal 2 (OC2), which is currently in the process of acquiring the Tin Hut Creek project for a cash consideration of $4 million.

The project area contains historically identified coal-bearing sequences within the Walloon Subgroup, the Juandah and Taroom coal measures.

Completion of the proposed acquisitions of EGR and OC2 is conditional upon White Energy completing a proposed capital raising of approximately $15 million,

Funds raised under the proposed capital raising are intended to be applied towards the proposed acquisitions, project development activities, general corporate purposes, and additional working capital.

Subject to completion of the proposed transactions and receipt of all required approvals Nathan Tinkler is proposed to be appointed executive chair of White Energy John Canavan is proposed to join the board as a NED.

WEC is up 48% to 6.4¢. Mkt cap $18.98M.

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