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Multiquip Aggregates' fleet will enable Syngas to begin operations immediately at CEAL’s Ardmore Park quarry.
Multiquip Aggregates' fleet will enable Syngas to begin operations immediately at CEAL’s Ardmore Park quarry.

Syngas to acquire Ardmore Park quarry

A power generation giant has formally entered the extractive industry with the proposed acquisition of quarrying and civil construction interests.

Syngas, a company which is engaged in power generation from biomass and coal to liquids technologies, has entered into an agreement to acquire a quarry and a civil engineering business in New South Wales. 

The Heads of Agreement is with CEAL Ltd and Multiquip Aggregates to acquire a quarry owned by CEAL and the civil engineering business operated by Multiquip.

CEAL Ltd is the owner of the Ardmore Park quarry and, subject to certain conditions, holds development approval to extract and transport 400,000 tonnes of material. According to the Environmental Assessment document, sand resources targeted for extraction at Ardmore Park have been estimated at 6.3 million tonnes and the hard rock resource estimated at nine million tonnes. 

Around 92 per cent of this material would be suitable for production of construction or road building materials.

Multiquip Aggregates is a transport, earthmoving and civil contracting business that owns trucks and earthmoving machinery. 

This acquisition will allow Syngas to quickly move into an operations mode as Multiquip Aggregates has mobile plant and experienced personnel and CEAL has been granted development approval for the extraction of aggregate, road base and construction sand.

Extraction and processing operations are approved until 30 July, 2039. Some conditions on road upgrades are to be met and this means that Syngas must raise capital of up to $20 million, with a minimum of $7.5mill to be raised. 

This money will be used to complete the road upgrades, the construction of a crushing and screening plant for the basalt resource and the construction of a washing plant for the production of fine aggregates.

The transaction is conditional on Syngas shareholder approval.

Sources: Syngas, Proactive Investors, ASX

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Tuesday, 22 October, 2019 8:19am
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