Cougar Energy (ASX: CXY) has confirmed that while its initial priorities revolve around its conventional coal assets in the Bowen and Surat basins, underground coal gasification remained integral to its future business.
Separately, the company has terminated its Share Purchase Agreement with The Australia Special Opportunity Fund (ASOF) run by The Lind Partners following the completion of its capital raising in February this year as well as the postponement of tranche payments under the SPA.
Underground Coal Gasification
Cougar is redefining its strategic approach to UCG in Asia by focusing on a smaller number of opportunities and further support will come from new directors, Andrew Matheson (Chairman) and Andrew Purcell, who both have extensive experience working in the resources and financial sectors of Indonesia as well as a wide ranging network of contact across the region.
Cougar will also seek to resolve its issues with the Queensland Government related to the Kingaroy UCG pilot project.
Queensland coal still core focus
The company continues to focus on enhancing the value of its Queensland coal assets, with the start of the JORC drilling program on its Mackenzie PCI coal tenement in the Bowen Basin.
The drilling program is funded by the recent A$1 million share placement to institutional and sophisticated investors.
Mackenzie has an exploration target of 120 million to 170 million tonnes of PCI grade coal and is between to the Jellinbah (NYSE:PCI) and Yarrabee (PCI and Thermal) coal mines.
The company is also seeking strategic investors in the project and/or potentially a cornerstone investor in the company while also completing the evaluation at a scoping level for options relating to its Wandoan Thermal coal project.
Opportunities to consolidate the company's portfolio with complementary coal assets are also being investigated by the Board.
Australia Special Opportunity Fund
Managing director Rob Neill said the ASOF facility has served the company well and it was grateful to the Lind Partners team for the professional management and conduct of the funding.
"As Cougar Energy moves further down the pathway of generating value for all shareholders through the exploration and development of Mackenzie, the Company will seek to source its funding from key cornerstone and institutional investors and current shareholders," Neill added.
The SPA was closed at no cost to Cougar.
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