History
A Queensland thermal coal explorer grew a 3.44 billion tonne resource but, after Noble Group's debt conversion and years of suspension, was removed from the ASX in September 2022.
2007-2009: Listing and the Blackall find
East Energy Resources listed in December 2007 after an IPO of 18 million shares at 25 cents, raising $4.5 million. It held two Queensland coal projects, Norwich Park and Blackall, bought from vendors linked to its chairman and managing director. Shares on issue were 22.3 million at the end of 2008.
Blackall became the focus. In January 2008 old 1974 data suggested a non-JORC (not formally verified) target of 79 to 90 million tonnes. The exploration licence was granted in May 2008, drilling began in June, and coal turned up in 94% of the first-phase holes. The company raised its target to over 200 million tonnes in August and 500 to 550 million tonnes in November. In April 2009 it announced a maiden JORC resource of about 1.2 billion tonnes, rated Inferred (the least certain category).
Money was harder to find. A 2009 rights issue aimed at about $8.9 million raised only $3.8 million, from 38.1 million shares at 10 cents. Chairman Terence Byrt resigned in April, and Mark Basso became Executive Chairman in August. In October a 16-hole program at Capella found no coal, so the company dropped that tenement. Executive director Clive Triplett left in November.
2010-2012: Noble Group arrives
Northern drilling in 2010 showed coal continuing north, adding about 14 kilometres of strike length, and management said the resource could exceed 2.0 billion tonnes. In May a subsidiary of Singapore-listed Noble Group bought 19.99% of the company, its first major strategic shareholder. Noble executive Rex Littlewood joined the board in July. Bulk sample tests in October gave a washed yield of about 70%.
Options were exercised in early 2011, raising $7.569 million through 37.8 million new shares and lifting shares on issue to 166.4 million. The money went to the Blackall mining licence application, studies and exploration. A May 2011 JORC resource showed 469 million tonnes Indicated (a firmer category) within 749 million tonnes. The full report in June gave 459 million tonnes Indicated; the text does not explain the difference. The licence application was lodged in June 2011.
In September 2012 a new SRK resource put Blackall at 1.74 billion tonnes: 627 million Indicated and 1,113 million Inferred. Days later the company signed a secured facility of up to $5.5 million with Idalia Coal, 50.1% owned by a Noble subsidiary.
2013-2015: Buying Idalia
In January 2013 EER agreed to buy its own lender, Idalia Coal, from Noble and Majicyl for shares valued at 20 cents, against a market price of 10 cents. Idalia added a 440 million tonne Inferred resource and adjacent tenements. Shareholders voted in May, and 190.0 million shares were issued at 20 cents ($38.0 million). Noble then held 40.93% and Majicyl 45.87%. Noble also refinanced $13.48 million of debt over five years.
Cash was thin: about $192,000 at September 2013, with up to about $4.9 million of Noble loan available. In July 2014 the EPC 1399 resource was updated to 1,504 million tonnes, lifting the combined Blackall total to 3.44 billion tonnes. Mining Development Licence 464 was granted from August 2014. In March 2015 the regulator combined all tenements, now 3,580 square kilometres, under Project Status, allowing lower exploration spend to conserve cash in the coal downturn. Shares traded at 1 cent.
2016-2019: The Noble dispute and dilution
The record for 2016 and early 2017 is quiet. In September 2017 EER suspended trading over a dispute with Noble about drawdown requests under the 2013 facility, saying it was critical to solvency. In November Noble advanced $500,000 and the facility was restructured, bringing forward Noble's right to convert debt to shares.
Shareholders approved conversion in May 2018. Chris Thoroughgood joined the board, founder Mark Basso-Brusa resigned after 11 years, and Littlewood became Managing Director and Chairman. In June 2018 Noble's $27.02 million of debt converted at $0.0095 into 2,844,506,105 shares, issued to its subsidiary Maylion. Shares on issue rose from about 356 million to 3.2 billion, heavily diluting other holders. In January 2019 EER signed an A$1.355 million loan with Noble Trading Co at 9.8%, as Noble now owned 93.42%.
2020-2021: Suspension and a change of owner
A further A$500,000 Noble loan was signed in January 2020, and MDL 464 was renewed to July 2024. In September 2020, after the price rose from $0.004 to a high of $0.036, EER said it was discussing a possible recapitalisation and its controlling holding, and its shares were suspended.
In December 2020 Noble Netherlands agreed to sell Maylion to Axis Minerals. Shareholders approved on 21 May 2021 and it settled on 28 May. James Newbury became Executive Chairman and Managing Director, and Littlewood and Thoroughgood resigned. Noble's debt of $1.855 million plus interest was forgiven, and the year to June 2021 showed a profit of $8.17 million against a $7.14 million loss. In October 2021 EER engaged GOMAC Projects for a concept study on converting Blackall coal into gas, hydrogen, fertiliser and other products.
2021-2022: Delisting
In December 2021 three directors resigned, and EER borrowed A$200,000 interest-free from Cavalier Corporate, owned by director Ranko Matic. A further A$100,000 came from Cataalna Pty Ltd, also controlled by Matic, in May 2022, after cash fell to $3,000. The GOMAC study stalled for lack of funds.
By 30 June 2022 cash was $30,000. Annual listing fees went unpaid, and ASX removed EER from the official list on 19 September 2022 after two years of continuous suspension. Maylion held about 93.4%. The recapitalisation was never announced as completed, and the record does not say what happens to holders' shares.
Written from the 53 story beats below (2007 to 19 Sept 2022), which come from the company's own announcements and filings.