Altona Energy surges on Arckaringa agreement

Altona Energy and its joint venture partners Sino-Aus Energy Group and Wintask Group have signed an agreement modifying the terms the Arckaringa coals-to-chemicals project in Australia.

Altona said its partners will invest a maximum of AUD33m (£15.4m) in four contribution stages of the project.

The company said an initial drilling programme will be planned as a part of a bankable feasibility study which is due to be completed within three years.

Sino-Aus will provide Altona with working capital of up to £1.25m in two tranches, subject to certain conditions.

Executive chairman Qinfu Zhang said: “Despite wider market turmoil since the signing of the original agreement, Altona and Wintask have continued negotiations with Sino-Aus and we are delighted to have signed this Deed of Variation to our original agreement with Sino-Aus and Wintask.

“We look forward to the future funding dates whereafter we can commence the Arckaringa project in earnest.”

At 1245 GMT, Altona shares were up 43% at 0.43p.