www.reyresources.com
Rey Resources (ASX: REY) is thermal coal development company with a large resource and major land position of 8,000km2 in the emerging Canning Basin of Western Australia. A Pre Feasibility Study on the firm’s maiden 511Mt JORC resource at Duchess Paradise was completed in January 2010 and revealed a 2Mtpa highwall mining export thermal coal operation, commencing production in 2013, to be financially robust. Capital costs are estimated at A$113 million and operating costs at A$60/t FOBT Derby, where Rey has its own port and loading facility. A major exploration program in 2010 over 100kms of subcrop will seek to extend the 8 year life of the proposed operation and add new resources.
Rey Resources sells Chilean exploration assets to focus on coal developments
Sydney-based Rey Resources (ASX: REY) has reached an agreement with China Yunnan Copper Australia to divest its Humitos copper exploration leases in Chile.
The purchase price is $200,000 cash and a 1.5% Net Smelter Royalty on any future production from the leases.
During the afternoon trade, shares in the company increased slightly to 16c.
The divestment is subject to a 30 day due diligence period by CYU and to normal Chilean regulatory approval. There is no accounting impact on Rey Resources.
The disposal is part of the Rey Resources’ strategy to rationalise the Company’s non-core assets to allow management focus on the Canning Basin Coal Projects.
Rey Resources is evaluating thermal coal export operations based on the Duchess Paradise Project which is part of the Company’s Canning Basin Coal Leases.
These leases encompass over 8,000 square kilometres in the Fitzroy Trough of the Canning Basin in Western Australia.
