Resources junior NuCoal (ASX : NCR) has decided to quit the ASX and list on the National Stock Exchange of Australia (NSX) after a spat with NSW Premier Chris Minns regarding ongoing corruption claims.
NuCoal owns 100% of Dellworth which holds exploration licence EL 6812 (Savoy Hill) adjacent to mining operations owned and operated by Glencore, Coal & Allied and Anglo Coal.
In 2009, Doyle's Creek Mining sold exploration licence 7270 to NuCoal, which caused a flurry of excitement due to its proximity to existing coal operationds.
However, shares in the junior tanked from 2010 when the former director of Doyle's Creek Mining, John Maitland, was investigated by the Independent Commission Against Corruption, jailed for misconduct, and the NSW Government seized the company's mining license.
In December last year, Maitland was acquitted of misconduct in obtaining the Doyle's Creek license, yet had already served a four year jail sentence.
NuCoal subsequently sent a letter to the NSW Government requesting compensation after Maitland's innocence of any wrongdoing.
In a reply to the NuCoal board in late January, Minns stated “I confirm that, having given the issue careful consideration, the NSW Government is not proposing to establish a compensation scheme for persons claiming to have suffered losses as a result of the enactment of the Act”.
The “Act” refers to the Mining Amendment (ICAC Jasper and Acacia) Act 2014, which cancelled exploration Licence 7270, Doyles Creek.
NSX listing
NuCoal has now decided to transfer the company across to the NSX. With its low terms of entry onto its bourse, the NSX requires just 50 shareholders with at least $2,000 invested in the company, as opposed to the ASX’s minimum requirement of 300 shareholders.
The $9 million market-capped NSX - itself listed on the ASX - is seen as a boutique register for minnows and will allow companies to publicly trade at a minimum company valuation of just $500,000.
The ASX, however, requires a company to have either $4 million in net tangible assets or a $15 million market cap upon being granted entry.
At the time of writing the NSX had almost 50 securities on its books worth over $2.7 billion.
The $3.8m market-capped NuCoal - which will remain suspended from trading - shall exit the ASX on 28 February and jump onto the NSX on 3 March this year.
