19 April 2012
REQUISITION FROM SHAREHOLDER - Coalworks Board strongly opposes proposal
On Wednesday 18th April 2012, Coalworks Limited
(ASX: CWK or "Coalworks") announced that it had been served
with a notice requisitioning a general meeting of
shareholders to consider the removal of its only independent
director, Mr Wayne Mitchell (Non-Executive Chairman) and its
CEO, Dr Andrew Firek (CEO and Managing Director) and their
replacement with two directors proposed by Macquarie Bank
Limited ("Macquarie"), Mr Anthony J. Ferguson and Mr Johann
C. Jooste-Jacobs.
The Board of Coalworks wishes to advise that it strongly
opposes the proposed resolutions, which it does not consider
to be in the best interests of all shareholders.
Coalworks notes media speculation linking the move to the
completion of the Whitehaven and Aston Resources merger and
identifying Coalworks as a bolt on acquisition. At Coalworks'
AGM last November, Macquarie and Boardwalk (now to be part of
Whitehaven) voted to remove two directors of Coalworks, and
Coalworks considers that the proposed removal of Mr Mitchell
and Dr Firek could make it easier for a potential acquirer to
effectively gain control of the Company without a fair offer
being made to all of Coalworks' shareholders.
Coalworks considers that an independently Chaired board is
best placed to achieve an appropriate premium for any
potential change of control for all shareholders, which
reflects the long term value of Coalworks to an acquirer.
Coalworks' Board and management are committed to delivering
significant value to all shareholders through building a new
independent Australian coal producer, with production to
commence at Vickery South in 2015 and Ferndale in 2016. The
Board believes that excellent progress has been made towards
executing on that strategy in recent months, and that
combined with the ongoing consolidation of the Australian
coal industry, the company is well positioned for a
significant re-rating.
The board of Coalworks will continue to communicate to
shareholders with regards to the proposed Extraordinary
General Meeting.
For further information, please contact: Nathan Bartrop
Company Secretary
Tel: +61 2 9922 1344 Fax: +61 2 9922 4288 Email : info@coalworks.com.au www.coalworks.com.auFor media inquiries, please contact: Dudley White / Garry Nickson
MAGNUS Investor Relations + Corporate
Communication
Tel: 02 8999 1010 Email: dwhite@magnus.net.au/ Cautionary Note: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 Coalworks Limited and may cause actual results to differ from the release. Coalworks Limited takes no responsibility to make changes to these statements to reflect change of events or circumstances after the release.
Coalworks has a portfolio of projects in Australia including: 1. Vickery South, Gunnedah Basin (exploration target coking/thermal coal) # JORC Resources Increase by 15% to 58.5 Mt - see ASX Announcement 18.07.2011 # ITOCHU to proceed with BFS for Vickery South - see ASX Announcement 18.05.2011 # ITOCHU signs Farm In Agreement in $11m deal - see ASX announcement 04.05.2010 # Preliminary Feasibility Study - positive with semi soft coking coal forming 83% of product - see ASX announcement 15.06.2011 2. Ferndale Coal Project # Coalworks includes its 92.5% owned subsidiary Loyal Coal Pty Ltd # JORC Inferred Resource 743 Mt: 443 Mt Open Cut Inferred and 300 Mt Underground Inferred Resource #Boardwalk Resources signed Farm-In and Joint Venture Agreements in $25m deal - see ASX announcement 09.12.2010 3. Oaklands Coal Project (JORC measured, indicated and inferred 822Mt thermal coal) #see ASX announcement 5.11. 2009; #Strategic Alliance with Synthesis Energy Systems Inc to develop Oaklands coal-to-petrol plant announced - see ASX announcement 2.12.2009ASX Release
Page 2
distributed by |