Wealthy young coal baron Nathan Tinkler remains on track to float his company Ashton Resources in the next six months, after successful completing the $480 million purchase of the Maules Creek Coal mine in New South Wales.
According to a report in the Australian Financial Review, the deal for the undeveloped project, which was offloaded by Rio Tinto’s Coal & Allied subsidiary, was completed after Ashton secured funding from Noonday Global Management, the sister company to US fund manager Farallon Capital Management.
Tinkler now plans to list the company on the Australian Stock Exchange within six months, although he will retain majority control and is only likely to sell off about 20% to raise money to develop the project further.
Tinkler told The Australian he is close to signing off-take agreements with top Asian steel mills.
“The quality projects end up with the top Asian steel mills and we don’t expect Males Creek will be any different,” he told the papers.
“Now… we can sit down and have meaningful talks in regards to them participating in a joint venture.”
Tinkler is expected to remain at the helm of Ashton when it floats.
It will represent something of a return to the ASX for the young miner, who became a substantial shareholder in independent coal company Macarthur Coal when he sold a coal deposit to the company.
Tinkler was fourth on BRW’s Young Rich list last September, with a fortune of $366 million.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
Comments