Blackgold International Holdings Limited

EnterMo Limited

Blackgold International Holdings Limited ("Blackgold") and its operating subsidiaries carry on the businesses of coal mining as well as coal trading. Blackgold owns and operates a productive coal mine (the Caotang Mine) and has entered into agreements to acquire the business and operating assets of another productive coal mine (the Heiwan Mine) in the Chongqing Provincial-level Municipality of the People's Republic of China. The mines have been operating profitably for the past 3 years with recent profit before tax for the six months ended 30 April 2010 of $9.06 million. Blackgold produces thermal quality coal which is supplied for local consumption to nearby power plants. Existing demand for Blackgold's product far exceeds current supply levels offering the opportunity to significantly increase production levels. The Directors believe that Blackgold is one of the largest privately owned coal mining groups in China.

Coal consumption and coal prices in China have increased steadily since 2003. The Board of Blackgold expects demand for thermal coal used in power plants within China and within the immediate region to remain high for the immediate future because of strong economic growth and also supply constraints imposed by the Chinese government which have limited domestic output through the closure of a number of small mines. These developments have enabled the Company to identify two clear and distinct opportunities to achieve positive financial results for Shareholders, namely:

  • the Company expects to continue to enjoy strong buying demand for the purchase of its coal output at commercially attractive prices; and
  • China's policy to close or encourage the acquisition and consolidation of smaller mines provides great opportunity for the Company to acquire and integrate these operations.

To take advantage of this situation Blackgold is undertaking this Offer of New Shares to raise funds and apply these funds towards implementing a clearly defined growth strategy designed to bring the Group to the next level of operations.The growth strategy includes:

  • expanding existing production capacity and modernising production practices of the two existing mines;
  • acquiring other viable coal mines in the vicinity of the twoexisting mines. The Company has already identified some potential acquisition targets; and
  • expanding the scale and scope of the Group's coal trading business to include the importation of coal for sale in China from other coal producing countries such as Indonesia and Australia.

Blackgold Prospectus - Disclaimer

A copy of Blackgold's International Holdings Limited's ("the Company") Replacement Prospectus dated 15 October 2010 lodged with the Australian Securities and Investments Commission ("ASIC") on the same day can be obtained in Adobe Acrobat (pdf) format by clicking below. The Replacement Prospectus replaces the prospectus dated 30 September 2010. The Offer constituted by the Replacement Prospectus in electronic form which can be downloaded by clicking below is available only to persons (not including US persons) receiving the Replacement Prospectus in electronic form within Australia. Persons who receive a copy of the Replacement Prospectus in its electronic form may, during the offer period, obtain a paper copy of the Replacement Prospectus (free of charge) by telephoning Peregrine Corporate Limited on (03) 9824 8166. Applications for Shares may only be made on the Application Form that is attached to the electronic copy of the Replacement Prospectus downloaded from this site, or an Application Form which was attached to or accompanied a paper copy of the Replacement Prospectus obtained by contacting the parties set out above. The Corporations Act prohibits any person from passing on an Application Form to another person unless it is attached to or accompanied by a hard copy of the Replacement Prospectus or the complete and unaltered electronic version of the Replacement Prospectus. Offers of the Company's shares are made in the Replacement Prospectus. Investors should consider the Replacement Prospectus in deciding whether to apply for shares in the Company. Anyone wishing to acquire the Company's shares who is eligible to participate in the Offer will need to complete an Application Form that will be in or will accompany a paper or electronic copy of the Replacement Prospectus. The Company will not accept a completed Application Form if it has reason to believe that the Applicant has not received a complete paper copy or electronic copy of the Replacement Prospectus or if it has reason to believe that the Application Form or electronic copy of the Replacement Prospectus has been altered or tampered with in any way. The Company cannot give an absolute assurance that the electronic version of the Replacement Prospectus will not be tampered with or altered in any way. Any investor in doubt concerning the validity or integrity of an electronic copy of the Replacement Prospectus should immediately request a paper copy of the Replacement Prospectus directly from the parties identified above or a financial adviser. The Offer comprised in the Replacement Prospectus is not available to non Australian residents where prohibited by local law.