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(L-R) Tiffany Maskel, Senior Youth Girls runner up Maddison Hite, Senior Youth Girls winner Nicola Pickering and Ben Hungerford. mining Matilda Walsh enjoying the entertainment at Saturday’s race day. csg fifo Port The Paul McGuire Memorial Dachshund Race raised over $4000 for the RACQ Capricorn Rescue Helicopter Service. (L-R) Trackside with Isaac Regional Councillor Jane Pickles Mayor Anne Baker and Deputy Mayor Geoff Bethel at the 2017 Middlemount Race Day on Saturday, August 5. Construction Aboutusgeneric_2 mine Nicola and Kylie Pickering Steve Beale and Chris Dunphy, MIPEC Best Dressed Gent winner Robin Sellar. (L-R)Tina Vebel, Merill Bulst and Nick Bulst
(L-R) Tiffany Maskel, Senior Youth Girls runner up Maddison Hite, Senior Youth Girls winner Nicola Pickering and Ben Hungerford. mining Matilda Walsh enjoying the entertainment at Saturday’s race day. csg fifo Port The Paul McGuire Memorial Dachshund Race raised over $4000 for the RACQ Capricorn Rescue Helicopter Service. (L-R) Trackside with Isaac Regional Councillor Jane Pickles Mayor Anne Baker and Deputy Mayor Geoff Bethel at the 2017 Middlemount Race Day on Saturday, August 5. Construction Aboutusgeneric_2 mine Nicola and Kylie Pickering Steve Beale and Chris Dunphy, MIPEC

Hail Creek JV ends
SMALL cap miners’ hopes dashed as Rio pulls out of possible Hail Creek expansion.
Wednesday 01 July 2015  

THE financial future of Australian Pacific Coal (APC) is looking even more fragile today, following a decision by Rio Tinto not to continue with its JV on the Hillalong tenement adjacent to Hail Creek mine west of Mackay.

In a short statement, Rio Tinto said it had decided not buy the tenement from APC

“After the completion of exploration work on Hillalong and subsequent review of results, RTX  [Rio Tinto] has decided not to exercise the option to acquire the tenement,” they said.

“Accordingly, we will let the agreement lapse.”

The decision by Rio Tinto is a damaging blow to APC, who at the end of April had just $300,000 in working capital with which to navigate the terrible conditions in the current mining cycle.

The Mt Hillalong tenements are located about six kilometres from Glenden and just under 20 kilometers from Rio Tinto’s existing Hail Creek mine.

Rio began drilling at the Mt Hillalong site just over 12 months ago, and APC has remained hopeful they would ultimately take over the project.

“Our main joint venture is with Rio Tinto,”  CEO Paul Byrne said in April.

“If Rio exercises its option to proceed, this will mean a large cash injection into APC and

a lot of optionality available to our company.

“We have the option to either retain a carried equity of 25 per cent in a joint venture with Rio Tinto and reap the rewards into the future, or we have the ability to completely sell out our interest in this project.”

Following Rio’s announcement, APC chairman, Peter Ziegler, said they were looking at their remaining options.

“While we recognise that this is a significant announcement for the company, we draw our shareholders’ attention to the fact that APC holds a number of high quality coal exploration tenements and that your directors are actively engaged in realising value from all of the company’s assets.”

According to APC, its flagship project is its Cooroorah tenement between Curragh and Jellinbah mines near Blackwater.

That project has advanced to the mineral development licence stage and has a deposit of around 125 million tonnes of metallurgical and thermal coal.
About 70 million tonnes has been rated as indicated under the JORC code for reporting on mineral deposits.

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