Gujarat NRE Coke to acquire coal asset in New South Wales

Mumbai, May 3 (UNI) Gujarat NRE Coke Ltd is set to acquire the Avondale Coal Project located in the Southern Coalfields of New South Wales from the Company through the issue of shares and options in Zelos.

Announcing this, the company said that Zelos Resources NL has executed a Heads of Agreement on May 03, 2006, to acquire the Avondale Coal Project located in the Southern Coalfields of New South Wales from the company through the issue of shares and options in Zelos. This project has significant coal resources in the vicinity of 200 million tonnes.

The company is currently in the process of advancing transfers and approvals for the Avondale Project and these will now be taken forward under the ownership of Zelos.

As part of the Avondale acquisition, the company will enter into an off-take agreement on commercial terms with Zelos to acquire 100 per cent of all coal production from Avondale.

The proposed transaction is subject to shareholder approval, if successful, this will result in Zelos becoming a partly-owned subsidiary of the company. In anticipation of this, shareholders will be asked to approve a change of name from Zelos to Gujarat NRE Resources NL.

Gujarat NRE Managing Director Arun Jagatramka said, ''the strong relationship that we have with Zelos provides us with comfort that within this entity the potential of the Avondale Project can be fully realised, creating shareholder value for all.'' The shareholders meeting to approve the proposed transaction is expected to held around June or July this year.

UNI SN PP SKB1955