It is reported that WPG Resources has now completed the ore asset sale to OneSteel Limited for around USD 320 million.

The amount is less than the previous USD 346 million estimates due to expenditure in the last quarter being lower than previously estimated. Importantly the price paid has no impact on the distribution to be paid by WPG to shareholders or the company cash balance post sale.

WPG will now proceed to distribute USD 1.05 per share to WPG shareholders as previously advised. The distribution consists of a return of capital of USD 0.42 per share that was approved by WPG shareholders at the general meeting held on 4 October 2011 and the payment of a fully franked dividend that was announced on 5 October 2011.

The anticipated distribution date is 2 November.

WPG main assets now include its 50% shareholding in Southern Coal Holdings Pty Ltd. Southern Coal Holdings owns the Penrhyn and Lochiel North coal projects and also has the exclusive right to use Evergreen Energy Inc coal upgrading process for the first 15 Million tonnes per annum of product coal produced anywhere in Australia.

Another asset is WPG land in Port Pirie. The company cash balance post distribution will be around USD 87 million with a tax liability of around USD 71 million to pay in April 2012.

(Sourced from www.proactiveinvestors.com.au)