Ahmedabad, May 5 : In a reverse merger of sorts, Australian coal mining major 'Zelos Resources' has executed an agreement to acquire Avondale Coal Project in New South Wales from 'Gujarat NRE Coke Ltd' (GNCL).
The acquisition will help GNCL enter into an off-take agreement with Zelos to acquire 100 per cent of coal production from Avondale, known to have 200 million tonnes of high quality hard coking coal in and around the existing coalfield.
While Avondale is wholly-owned by Gujarat NRE Coke, it also has 19 per cent share in Zelos, GNCL Managing Director Arun Jagatramka told UNI here today.
With this acquisition, he said, the total worth of the company would be around US 37 million dollars. Also, Zelos would become a partly-owned subsidiary of GNCL, for which the shareholders will be asked to approve a change of name too, from Zelos to 'Gujarat NRE Resources NL'.
GNCL was in the process of advancing transfers and approvals for the Avondale Project, which would now be taken forward under the ownership of Zelos, he added.