Crosby has signalled its intention to acquire Rey at A19.5c per share, well above Gujarat’s offer of 9c per share or one Gujarat share for every five Rey shares.
In Rey’s annual report, chairman Julian Ludowici said Gujarat’s bid had not succeeded because most shareholders understood it undervalued the company.
But he said Rey’s board was still awaiting a receipt of the formal offer from Crosby.
“We expect that Rey will be responding to the Crosby’s bid in the next month and we will continue to provide you with the latest updates as they arise,” he said.
A thermal coal explorer in remote Western Australia, in June Rey upgraded the resources of its Duchess-Paradise project in the Canning Basin to 511 million tonnes, including 35.2Mt measured, 143.5Mt indicated and 331.5Mt inferred.
Rey recently secured port access at Derby, with coal to be trucked 180km from the project site in a 2Mt per annum export operation.
A prefeasibility study of the open cut project will be completed late this year, with a definitive feasibility study and engineering design due at the start of 2010. Rey expects project start-up in 2012.
The company is preparing for further exploration on its leases, targeting an additional 1-2 billion tonnes of coal to support a conceptual operation of up to 20Mtpa.
Rey ended the 2008-09 financial year with $528,023 cash in bank.
Shares in the company closed up 6% to 26.5c yesterday.
