Gujarat NRE Mineral Resources signs agreement with Rey Resources Ltd

Gujarat NRE Coke Ltd has announced that On September 26, 2006, Gujarat NRE Mineral Resources Ltd (GNMRL), an associate company of the Company, has signed a binding agreement with Rey Resources Ltd (Rey) to farm into the tenements 10/04-5 and 11/04-5. The Agreement provides for GNMRL to assume ownership and operatorship of the permits through its Australian subsidiary NRE Resources Pty Ltd (NRE). The interest of the parties will be 90% NRE and 10% Rey which 10% will be free carried until the Grant of a petroleum production license.

The Agreement is subject to various government and regulatory approvals being obtained latest by June 30, 2007.

The Company is the largest manufacturer of metallurgical coke in India with an installed capacity of over 1 million MT pa, and has forayed in the recent past into steel and has acquired coal mines in Australia. In addition the company has strategic investments in Australia and New Zealand in companies engaged in coal mining and exploration in gold, iron ore, copper, zinc, base metals etc.

Rey Resources Ltd (Rey) is an Australian listed company, established in 2004 to develop a portfolio of coal, copper and gold exploration projects in Australia, Chile and Peru. Rey holds 18 exploration licences, in Canning Basin, Western Australia covering an area of 3970 sq km. Rey is the preferred applicant for oil tenements 10/04-5 and 11/04-5 located in the central part of the Canning Basin, Western Australia.

During October 2005 the Company acquired a 19.9% holding in the paid up equity of Rey and Mr Arun Kumar Jagatramka, the Vice Chairman & Managing Director of the Company, joined the Board of Rey as a Director.

Source : Equity Bulls

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