Payment received by Coalbank for the sale involves an up-front payment of $250,000 and 10 million shares in the purchaser, Gobi Lithium, an unlisted public company to be renamed Sierra Oil.
The scrip-based consideration represents 27% of the issued capital of Sierra Oil.
Under the terms of the agreement, Coalbank shareholders will be offered a priority entitlement to subscribe for new shares in an initial public offering of Sierra.
Surat holds one granted authority of prospect (ATP) lease and is the preferred application for three ATP applications in Queensland.
The portfolio of prospective ATPs includes both unconventional and conventional oil and gas targets.
Coalbank’s coal assets include the Moreton and Chinchilla projects and four tenements in the East Surat and Bowen Basin areas.
The company has established a 1.3 billion tonne JORC-compliant thermal resource for its Blackall coal project in the Galilee Basin.
Blackall’s inferred coal resource includes 825 million tonnes estimated at less than 50m depth and 1.2 billion tonnes estimated at less than 100m depth.
