MOU with subsidiary of Anhui Provincial Bureau of Coal and Geology in China
In August 2011 AMMG announced that Canning Coal had signed a Memorandum of Understanding (MOU) with the Queensland-based Anhui Lianghuai Resources Pty Ltd, an Australian registered wholly owned subsidiary of the Anhui Provincial Bureau of Coal and Geology "for potential capital investment and project development of AMMG’s Western Australian based Canning Basin coal project."
AMMG stated that the terms of the MOU included "working towards a direct capital investment by way an investment in shares by Anhui in AMMG or its subsidiaries" and "the entering into a Heads of Agreement for a Joint Venture for the development of Canning Coal’s Western Australian Canning Basin coal project." AMMG stated that "Anhui has a state sanctioned mandate and objective to actively source a variety of minerals including coal globally."
AMMG stated that the two companies aimed "to work together over the next few months to determine whether agreement can be reached on the terms of a direct capital investment by way of a share placement in AMMG or its subsidiary Canning Coal." (Emphasis added)
AMMG stated "has been actively exploring and extending its tenement base in the Canning Basin and now has tenements in application stage extending over 1334 square kilometres."
In its October 2011 quarterly activities report, AMMG's only news beyond its original announcement was that a "further follow up trip to Anhui’s Hefei office is scheduled for early November 2011, to progress the objectives of the MOU." At the November annual general meeting, AMMG's Chairman had little to add other than to state that over the next year he hoped to see the "advancement of the key objectives" of the MOU.
Canning Coal gets the cold shoulder
However, the project has sunk without trace. In AMMG's quarterly activities report for until the end of December, Canning Coal didn't even rate a mention. The silence on Canning Coal continued in the quarterly activity report for the March quarter, and rated only a passing mention in the June activity report. and nothing in the September report.
Articles and resources
- "Chinese Exploration Bureau signs MOU with AMMG on its Canning Basin coal project", Media Release, August 31, 2011.
- Australia Minerals and Mining Group, "September 2011 Quarterly Report", October 2011, page 6.
- "Chairman's address to AGM", November 29, 2011.
- Australia Minerals and Mining Group, "December 2011 Quarterly Report", January 2012.
- AMMG, "March 2012 Quarterly Report", April 2012.
- AMMG, "June Quarterly Activities Report", July 2012, page 7.
- AMMG, "September Quarterly Activities Report", October 202.
- AMMG, "AMMG Secures the Green Range Coal Project, Great Southern Western Australia", Media Release, August 2, 2012.