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COMPLII FINTECH SOLUTIONS LTD — Capital/Financing Update 2013
Oct 16, 2013
64639_rns_2013-10-16_229f041e-86d7-499a-bf6c-5aa0b627ad5c.pdf
Capital/Financing Update
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Resource Star Limited Level 9, 440 Collins Street, Melbourne Vic 3000 P. +61 3 9607 1322 F. +61 3 9607 1329 www.ResourceStar.com.au ABN 71 098 238 585
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17 October 2013
ASX Announcement/Media Release
Update on acquisitions
Highlights:
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Company elects not to proceed with D-Bar Leasing acquisition on current deal terms following due diligence process but keen to continue negotiations with the vendors.
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Company currently reviewing an opportunity to acquire a significant interest in an emerging Mongolian coal producer with potential near term production of anthracite, a hard compact of mineral coal, as part of its diversification strategy.
D-Bar Leasing acquisition
Resource Star Limited ( the Company ) is today providing an update on the potential acquisition of 50% of the shareholding in D-Bar Leasing, Inc.
Following initial due diligence of the D-Bar Leasing assets, the Company has elected not to proceed with the acquisition based on current terms.
The Company remains firmly of the view that the D-Bar Leasing project represents a potentially attractive opportunity for the Company and would go a long way to helping restore value to shareholders. Unfortunately, the Company was unable to satisfy itself within the time period of key production numbers and data.
Executive Director, Chris Burrell said today “We have spent a considerable amount of time conducting due diligence into D-Bar Leasing and we like what we see. Unfortunately, we could not satisfy ourselves that the overall projected production volumes could be achieved in the timelines necessary to generate the internal cash flow necessary to complete the works program or to meet the investment criteria third parties have indicated to us would be required for the high yield notes.”
“This being said, we still believe that investors are attracted to this deal and that a well-structured equity raising program could easily generate sufficient working capital to help the D-Bar project achieve its goals.” Mr Burrell said.
While the current Terms Sheet is no longer binding, the Company has nevertheless expressed its willingness to continue negotiations with the vendors.
Resource Star Limited Level 9, 440 Collins Street, Melbourne Vic 3000 P. +61 3 9607 1322 F. +61 3 9607 1329 www.ResourceStar.com.au ABN 71 098 238 585
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Emerging market coal opportunity
Consistent with the Company’s ongoing diversification strategy, the Company is currently reviewing an opportunity to acquire a significant interest in an emerging Mongolian coal producer with potential near term production of anthracite, a hard compact variety of mineral coal.
The Company has not entered into any binding agreement at this stage and will continue to keep the market informed.
For further information, please contact:
Chris Burrell Andrew Bell Executive Director Chairman +61 417 832 153 +44 7766 474849