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Coalworks www.coalworks.com.au/

Coalworks (ASX: CWK) has a primary focus on coal mining and production.CWK is a growing energy company focused on building an inventory of large coal assets in world class coal provinces and bringing them into production and profitability.

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Coalworks subject of A$149m Whitehaven Coal takeover bid

Coalworks (ASX: CWK) has received an off-market takeover offer of A$1 per share from coal heavyweight Whitehaven Coal (ASX: WHC), valuing Coalworks at around $149 million.

The offer represents a 17% premium to the $0.85 closing price of Coalworks shares last Friday, 4 May and a 22.1% premium to the $0.82 three month volume weighted average price as of the same date.

Whitehaven is likely interested in Coalworks for its Vickery South coking and export thermal coal project in New South Wales’ Gunnedah Basin.

The 6.8 square kilometre Vickery South project adjoins whitehaven's Vickery Coal project, where an open cut mine operated from 1991 to 1996.

Vickery South hosts a total JORC Resource of 58.5 million tonnes of bituminous coal, comprising 48 million tonnes Measured, 0.1 million tonnes Indicated and 10.4 million tonnes Inferred Resources.

Whitehaven said the acquisition will allow the company to consolidate its development and exploration portfolio.

The company also believes the takeover offer will eliminate the time and risk associated with the development of Coalworks’ assets, as well as funding uncertainties.

According to Whitehaven, the Vickery South and Ferndale projects are capital intensive and their development will require a substantial commitment of expertise, resources and capital, including for the development of infrastructure needed to deliver the coal to market.

Whitehaven said Coalworks’ assets can be developed more efficiently in combination with its own existing assets.

The company already holds a 17.3% interest in Coalworks.


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