BlackGold's proposed reverse takeover falls through

INDONESIAN coal miner BlackGold Natural Resources' planned acquisition of Mongolian mining and energy firm Tengri Coal and Energy (TCE) has been scrapped.

The seller, TCE's sole shareholder, terminated the sale and purchase agreement as a share placement exercise was not completed by the deadline.

The deal, valued at S$1 billion, would have resulted in a reverse takeover of BlackGold.

Under the agreement signed with the seller MGL Development in May, BlackGold was to complete the placement of new shares for up to S$5 million by June 11. The deadline was later pushed to Aug 11, and both parties did not extend it again.

The completion of the placement exercise was a condition precedent to the completion of BlackGold's acquisition of TCE.

BlackGold said that following the termination of the deal, it will continue to focus on its ongoing business activities and at the same time also source for other corporate, acquisition and/or financing opportunities.

Shares of BlackGold tumbled 6.3 per cent or 0.1 Singapore cent to close at 1.5 cents on Thursday, before the announcement.

TCE was previously the target in another potential reverse takeover last year. Catalist-listed balloon catheter specialist QT Vascular, seeking "a new lease of life", had proposed to acquire the Mongolian company, but the transaction fell through because two conditions precedent were not met by the deadline.

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• QT Vascular shares see sell-off after proposed reverse takeover falls through