“The acquisition of Cascade is the initial step toward Eastern’s medium and long term plans to develop as an energy company,” Eastern chairman Gordon Smith said.
The company paid $NZ3.5 million from cash reserves for the project near Westport on the south island of New Zealand. The company hopes the deal will enable it to develop and stabilise its management team and systems for its medium and long term plans in New Zealand and Australia.
The Cascade operation has a resource of approximately 1.5 million tones, 770,000t of measured, 112,000t of indicated and 600,000t of inferred resource.
Eastern said it would further develop the mine to provide immediate cash flow with a focus on high margin “take or pay” contracts. The deal would establish Eastern as a producer, and add credence to the company’s ability to develop further coal resources in New Zealand.
Last week Mitsui Coal Holdings entered into a joint venture with Eastern in the Broughton Coal project in Queensland’s Bowen Basin where an initial coking coal resource has been established.
