The takeover saga and associated war of words started back in June 2009, with Gujarat’s offer consisting of one Gujarat share for every five shares.

Later offers added a cash option of 9c per Rey share.

Rey’s directors were never enthusiastic about the offers which were regularly extended by the New South Wales coking coal producer.

Due to new share issues since mid-2009, Gujarat’s stake has fallen from 16.6% of Rey to 12.38%.

Rey is continuing the definitive feasibility study for its Duchess Paradise thermal coal project in the Canning Basin of Western Australia.

Rey aims to start mining through an initial 2 million tonnes per annum highwall operation, while there are bord and pillar and longwall mining options for further development.

The Canning Basin project holds a total resource of 510 million tonnes, with the coal to be trucked 180km to the Port of Derby for export to Chinese and Indian markets.

After eight years of highwall mining, Rey aims to either start up a 2Mtpa raw coal bord and pillar operation, or a 4.4Mtpa raw coal longwall operation.

Rey shares closed down half a cent to 13c yesterday.