ENP Newswire -
Release date- 02072014 -
The completion of the sale of the above assets and as described below will be a disposal of the Company's main undertaking within the meaning of ASX Listing Rule 11.2 and is therefore subject to the approval of Orpheus shareholders.
As outlined in the Company's March Quarterly Report, Orpheus has continued to work with its Joint Venture ('JV') partner, Mr Suksmanto and PT Mega Coal, to deliver value for shareholders via the sale of non-core and non-performing assets.
The original JV Agreements Orpheus Energy entered into with Mr Suksmanto and PT Mega Coal since 2011 for each project, specifically provided for the potential repayment of funds expended by Orpheus in acquiring and developing those projects introduced by Mr Suksmanto and PT Mega Coal. At the time, Orpheus Directors deemed it prudent to negotiate such provisions to protect shareholders' interests should the projects not turn out to be of sufficient quality to proceed in a profitable manner.
As it has transpired, none of the aforementioned projects have performed in a manner that gives Orpheus Directors confidence to proceed further, and accordingly, Mr Suksmanto and PT Mega Coal have honoured the original JV agreements and agreed to the sale back of these assets.
Through the personal undertaking, Mr Suksmanto personally commits to settle all outstanding debts by PT Mega Coal and related parties, and to indemnify Orpheus and related parties against cost, loss or liability, suffered by Orpheus or related parties in the case of a breach of the project sales agreements.
The details for each asset sale are detailed below:
B34 (OEG 51%; Nugroho Suksmanto, PT Mega Coal and related parties 49%) In
CBP (OEG 51%; Nugroho Suksmanto, PT Mega Coal and related parties 49%) In
ADK (OEG 51%; Nugroho Suksmanto, PT Mega Coal and related parties 49%) Since
An initial deposit of
The sale proceeds will significantly strengthen Orpheus's balance sheet as it re-calibrates the company's activities, as outlined in the March Quarterly Activities Report. The
Orpheus continues to undertake due diligence on a number of geographically and geologically diverse, potential near-term cash-flow projects. The company will keep shareholders updated as new growth projects are finalised.
Timetable and Shareholder Approval
Orpheus anticipates holding a general meeting in early August to obtain Shareholder approval for the proposed transactions.
Tel: +61 2 8281 8200
This release may contain forward-looking statements that are based upon management's expectations and beliefs in regards to future events. These statements are subjected to risk and uncertainties that might be out of control of
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