Padbury Mining’s plan to develop the Oakajee port and rail project with the help of Roland Bleyer’s companies has collapsed.
In an ASX statement, Padbury said the companies involved in the deal, Alliance Super Holdings and Superkite, had signed a deed of termination and release agreement.
"Padbury will continue to actively explore all available opportunities to exploit its existing intellectual property with respect to the Oakajee project," the company said.
However, the deal was dogged by speculation it would not go ahead when the mystery backer was revealed to be Sydney businessman Roland Bleyer.
Padbury promised the market on several occasions it would reveal the funding details of the deal struck up with Bleyer’s companies including details of any shareholder approvals required and details of any security Padbury was required to front up to obtain the money.
The company missed its self-imposed deadlines before the final statement last night confirmed the deal was dud.
The move was foreshadowed by WA Premier Colin Barnett who last week told reporters “there is little substance behind Padbury.”
He said he had not meet with representatives of the junior mining company and did not intend to.
“I don’t believe it’s realistic — simple as that,” Barnett said of the plan.
Last week Bleyer told The Australian he got involved in the Oakajee project to spur investment in Western Australia.
“The Western Australian government is not building the infrastructure — it can’t afford to,” he told the paper.
“So it’s being done privately between Australian companies and one Australian company that’s part of a global network.”
Padbury’s managing director Gary Stokes had previously said the funding announcement was legitimate.