Altona Energy has been a labour of love for Nick Lyth over the last 3months since his appointment as CEO, Lyth protests the company is now deploying a new strategy after an arduous decade listed on Aim. The new game plan appears to be the bar mitzvah of its Ackaringa basin asset which Lyth believes contains an economically extractable coal seam that runs south-west through it’s Westfield tenement, the simple yet effective plan is to demonstrate there is a substantial quantity of coal in the underexplored area from Westfield which is not handicapped by artesian geology.
On the 2nd February, the company released an update from its MOU with their joint venture partner which clearly shows Lyths pathway to pre-feasibility (PFS) which intern signifies there ability to then sell the asset on. (Click the RNS here)
”Under the terms of the MoU, Wintask, Sino-Aus and Altona, have confirmed their intention to co-operate to assess the potential for a conventional coal mine in the Westfield tenement. In addition, both Wintask and Sino-Aus have confirmed to the Company that the level of funding committed in the 2014 Joint Venture Agreement can be made available to develop the project (AUD$3.3 million and AUD$29.7 million, respectively). It is expected that these amounts would be sufficient to complete all exploration and also the bankable feasibility study.”
Whilst the company has been through the mill, and with light, at the end of the tunnel, we believe the company’s success will be determined by Nick Lyths ability to deliver on his conviction. We at TMS welcome the recent news and intend to monitor the companies progress from the current level of 0.375p.