As reported, CGE partners with the Beijing Yusenjiayu Environmental Protection Technology, Inner Mongolia Gu Xin Mining and Goldbridge Clean Tech Energy of the UK to undertake a commercial UCG project on Gu Xin’s 1.8 billion tonnes Inner Mongolia coal deposit. CGE is expected to hold a 35% controlling interest in the venture.
The JV plans to undertake the capital raising activities for the project on the Hong Kong Stock Exchange of not less than $120m and debt funding of not more than $280m.
Prior to the listing, initial funding of $1m would be contributed by the JV partners in proportion to each parties shareholding. CGE has to chip in $350,000, which would be funded from existing cash reserves.
CGE is also to be engaged and appointed by the JV to design, operate and manage the UCG plant under a separate commercial operating agreement.
