The original plans were formalised in January 2014 after Syngas signed a Heads of Agreement with CEAL Ltd ? operator of the New South Wales-located Admore Park Quarry that was to be acquired ? and Multiquip Aggregates, a transport, earthmoving and civil contracting business that owns trucks and earthmoving machinery.
The parties have now agreed to postpone the transaction until issues can be resolved, with Syngas citing ?various challenges in structuring the ultimate acquisition of CEAL?and Multiquip Aggregates?.
As a consequence, the original Heads of Agreement has been terminated but the parties will continue to discuss a potential merger.
The acquisition would have allowed Syngas to move into an operations mode using Multiquip Aggregates? mobile plant and personnel.
According to an environmental assessment document, the Ardmore Park quarry has sand resources estimated at 6.3 million tonnes and hard rock resources estimated at nine million tonnes.
The transaction was conditional upon a one for 200 share consolidation; issue of 22,000,000 new shares to vendor shareholders; and a capital raising of up to $20 million via issue of 20,000,000 new shares at $1 each, with a condition that a minimum of $7.5 million was raised.
Syngas, a power generation company working in biomass and coal, is currently capitalised at around $1 million.
Multiquip Aggregates is part of the Multiquip Group of Companies, which also manages Multiquip Quarries ? the trading name of CEAL.
Sources: Proactive Investors, Syngas, ASX