The plan, originally announced October 11, will see Macarthur spend around $A56 million through the farm-in and acquisition of the Bowen Basin tenements.
The agreement comes on the back of a farm-in arrangement signed in 2001 with Chinese-owned CITC Australia Coal Exploration and Bowen Basin Exploration (BBE), owned by Macarthur chief Ken Talbot.
Under the agreement, Macarthur was required to spend $A7.5 million towards exploration on the tenements over four years, which it met in October 2004.
Shares will be issued as consideration for the tenement interests with CITC receiving $A17 million worth of shares and Ken Talbot $A31.7 million.
Macarthur says the acquisition will maximise value on further exploration and will reduce any potential conflict between Ken Talbot’s role as controller of BBE and managing director of Macarthur.
Macarthur was trading at $A5.53 this morning.
