Itochu Corp to acquire 15-% stake in Aston's Maules Creek coal project

Itochu Corporation, Japan's third-largest general trading company, is acquiring a 15-per cent stake in the Maules Creek Coal Project of Australia's coal developer Aston Resources Ltd, for A$345 million ($339 million).

Itochu had in August 2010 agreed to buy a 2.75-percent stake in Brisbane-based Aston's initial public offering for A$33 million and obtained exclusive 120 days negotiation rights to acquire an interest and sales rights in the Maules Creek coal project that Aston is planning to develop.

Under the current deal, Itochu will also acquire an exclusive right to sell coal from the project to the Japanese market and preferred right to purchase up to 15 per cent of coal produced from Maules Creek on an annual basis.

Aston and Itochu have also agreed to extend the exclusive negotiation agreement until 14 June 2011 to continue negotiations for Itochu acquiring an additional 10-per cent stake.

Aston is an independent coal mining company that wholly owns the Maules Creek project, which is one of the last major undeveloped and significant multi-seam coal deposits in New South Wales.

Maules coal project, which is one of the largest coal deposits in Australia located in the Gunnedah Basin was acquired by Aston in 2009 from Rio Tinto for about $500 million, when the mining giant sold it at bottom of market price to reduce its massive debt.