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 reinstated to trading, completes capital raising
Rey Resources (ASX: REY) has had the suspension of its securities lifted by the ASX following the release of the company's announcement regarding a capital raising.
Rey Resources has today issued 33,300,000 ordinary shares following settlement of Tranche 2 of the placement.
Delays experienced in the transfer of funds by an offshore participant in the recent placement, that was approved by shareholders on 5 August, have been resolved and the relevant funds have now been received.
Rey recommenced its 2011 drilling program in June, after the wet season, at the Duchess Paradise thermal coal project in Western Australia, to expand shallow coal thermal coal reserves to extend the 10 year life.
The completion of the Definitive Feasibility Study at Duchess Paradise in June confirms it as being an economically robust thermal coal export project, with a longer life than expected, and strong cashflows estimated with EBITDA at $504 million over the first 5 years of sales.
