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Bandanna Energy soars

Published: 16:30 25 Jul 2013 AEST

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Bandanna Energy's (ASX: BND) shares have soared 30% to $0.15 intra-day today, compared to the closing price a week ago - with the company receiving an ASX price query 'speeding ticket'.

Bandanna said to the ASX that it was not aware of any material information that has not been released which may have attracted the investor interest.

Just before the close, Bandanna shares are trading higher at $0.17.

The company did though point to some comments made by Michael Roche, the chief executive officer for the Queensland Resources Council, on Bandanna's proposed thermal coal project at Springsure Creek. Roche said that the project was well placed to '... tick all the boxes.'

Springsure Creek hosts a high quality thermal coal resource with >40 years mine life at 11Mtpa, and is close to existing rail infrastructure – with no major standalone infrastructure works required.

Bandanna recently strengthened its balance sheet after selling its preference equity in WICET Holdings Pty Ltd (WIPS) for $47 million, providing an expected net gain of $6 million.

The proceeds of the sale will increase the company’s cash reserves to $121 million, of which $23 million is committed as security against infrastructure contracts.

Part of the funds raised from the sale of the WIPS will be applied to the ongoing approvals process leading to a Mining Lease at Springsure Creek, together with related pre-development activities including land acquisition and compensation, and further development of the co-existence strategy for agriculture and mining at the project.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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