Gateway Mining Ltd. said Dec. 19 that its planned acquisition of Queensland Coal Investment Holdings Ltd. and its Wilton and Fairhill coal projects will not proceed.
The companies agreed to terminate the deal after Gateway Mining failed to secure clearance from the ASX, despite restructuring certain aspects of the agreement.
Under the deal announced in early March, Gateway Mining was supposed to pay A$10 million in cash and issue A$50.5 million of shares at 1.2 cents apiece to acquire Queensland Coal. The company went on to secure up to A$10 million in funding in September for the deal.
Gateway Mining said it is in discussions related to other potential mining-related opportunities and its shares will remain in voluntary suspension until it is able to hold its annual general meeting.