Under the agreement, Guoli could subscribe to 81.8 million new shares in ASF’s subsidiary ASF Resources (ASFR) to take a 45% shareholding.
ASFR currently holds tenements in the Canning Basin in northern Western Australia which are prospective for thermal coal.
ASF Group chairman Min Yang said the injection of capital from Guoli would allow a proposed expansion of ASFR’s exploration and related activities.
“We are very pleased to be partnering with the Beijing Guoli Energy Investment Co Ltd,” Yang said.
“It represents another important step in the development of ASF Resources Limited to enable it to grow and expand its operations.”
The companies entered into an investment agreement on September 9 in which Guoli was required to pay ASF a $1 million deposit.
ASF received the balance of the subscription amount on December 29.
The company recently entered into an agreement with Clean Global Energy to purchase a handful of coal exploration tenements in Queensland and Victoria.
The acquisition will include five granted tenements and 21 tenement applications in Queensland’s emerging Surat Basin and Victoria’s Gippsland Basin, which are all prospective for thermal coal.
