Scadden Energy Joint Venture

The Scadden Energy Joint Venture, which has been promoting the Scadden Energy Project, was formed in January 2008 between Scadden Energy (70%), a wholly owned subsidiary of Blackham Resources, and Premier Coal (30%). The Scadden Energy Venture is a notional coal-to-liquids and/or coal export project near Esperance in Western Australia. (The company refers to both the Scadden Energy Project and the Scadden Coal Project without clarifying whether they are being used interchangably or the energy project is referring to the coal-to-liquids proposal only and the coal project to the coal export proposal.)

Background
Under the Joint Venture Agreement Blackham was required to pay $1.2 million in cash or shares when it received all the information and all the titles over the Scadden deposit. A further $1.3 million in cash or shares was to be paid at the time of a decision to begin commercial mining operations as well as 25 cents a tonne on Blackham's share of run of mine coal but capped at $12.5 million. However, Blackham baulked at the first payment. In late March 2011 it was announced that Premier Coal had agreed to waive the payment. (As part of the renegotiations Premier Coal's share in the joint venture has been reassigned to Wesfarmers Resources).

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