Nathan Tinkler's Mulsanne Resources has failed to come up with the USD 28.4 million in cash promised by Monday to take up a placement in listed coal junior Blackwood Corporation.

Blackwood notified the stock exchange this morning that Mulsanne had not paid the placement monies agreed at 30 cents a share at a general meeting on July 12th 2012 and Blackwood had refused to grant Mulsanne a further extension of time for payment.

Blackwood intends to recover the placement monies from Mulsanne Resources and reserves all of its legal rights against Mulsanne Resources.

Mr Todd Harrington CEO of Blackwood said that company had been working extremely closely with Tinkler Group since the placement was announced and had been told all along that Mulsanne was intending to complete and had confidence in completion. Tinkler is in the midst of due diligence to privatise Whitehaven Coal for USD 5.3 billion and is trying to raise the necessary funding while claiming support from 48 per cent of shareholders.

Mr Harrington said that it was not related to Tinkler's Whitehaven bid, which was a separate deal. The Blackwood placement to Mulsanne was legally binding and he would not say the deal was off altogether. If he pops up in two weeks with the money, would we take it? Absolutely.

He said that Blackwood was not at panic stage in terms of funding for its operations having finance for the next 5 to 6 months after agreeing to a loan from major shareholder Noble Group. The placement would have seen Mulsanne emerge with 34 per cent of Blackwood. On August 1 Blackwood had already extended the deadline for payment until yesterday.

Source - WA Today

(www.coalguru.com)