- Angel Seafood has acquired an additional 1.5 hectares of quality water at Coffin Bay, increasing its fishing capacity to 10 million oysters per annum
- The new water will cost $600,000 and will be paid over two transactions
- Angel will sell assets at Smoky Bay for $450,000 as the company no longer needs it
Angel Seafood Holdings has acquired an additional 1.5 hectares (Ha) of quality water at Coffin Bay, increasing its fishing capacity to 10 million oysters per annum.
The company entered into an agreement with investor Gregory Lawrence to acquire the new water for $600,000.
The new water spans 1Ha and is located in the productive Central Zone, which will be used for conditioning oyster sale. An additional 0.5Ha is located in Kellidie Bay to expand grow out area as well.
Coffin Bay is located in South Australia at the southern tip of Eyre Peninsula, about 46km from Port Lincoln.
The bay is known for its costal scenery, national parks and of course, the oysters.
The payment of $600,000 will be paid in two transactions over two and a half years. A deposit of $120,000 will be paid on signing the agreement.
The first transaction of $180,000 will be paid by December 18 this year and the second payment of $300,000 on July 1 next year.
Angel Seafood CEO Zac Halman is pleased with the acquisition.
“The acquisition of additional good quality water in Coffin Bay is another important step in delivering our growth ambitions and strengthens our multi-bay operations between Coffin Bay and Cowell,” he said.
Angel also announced it will sell its assets in South Australia’s Smoky Bay for $450,000. The funds will go towards today’s acquisition and paying down existing debt.
Smoky Bay is located approximately 380km away from Coffin Bay. Angel has owned 1.3Ha of water at Smoky Bay.
The leases at Smoky Bay were part of initial operations but due to the effectiveness of Coffin and Cowell Bay, the company decided the tenement was no longer required.
“The disposal of Smoky Bay assets is driven by our strategic intent to focus our multi-bay strategy on Cowell and Coffin Bay, while also optimising our capital allocation,” Zac added.
The company will now have 12.25Ha total in its Coffin Bay Oyster project.
Angel Seafood’s oysters are currently sold around Australia and overseas.
The company aims to produce fresh, clean, consistently high quality produce without compromising the environment.