International Coal expands coal footprint in Queensland

Saturday, 14 Jan 2012

It is reported that International Coal has completed due diligence on the acquisition of 100% of Great White Nominees, giving International Coal access to projects that neighbor existing large scale operating mines.

Independent expert analysis indicates that the assets are prospective for coking and thermal coal. International Coal has engaged an independent consultant to develop an exploration program for the coal exploration permit.

Following the exploration program, expected to be conducted over the coming months, International Coal will consider undertaking a drill program to assess the volume and quality of thermal coal deposits at the site.

Significantly, the coal exploration permit and one of the permit applications surround Anglo American's advanced open pit thermal coal mine in Callide.

Of the coal exploration permit applications, one is located in the well known coking coal district of Bundaberg, adjacent to International Coal’s existing Bundaberg project which contains two target exploration coal-bearing units.

Another of the applications is in an emerging region east of Mt Isa, where significant exploration and infrastructure planning is underway.

Terms of agreement

The consideration for the acquisition of Great White Nominees comprises:
1. 2 million International Coal shares;
2. USD 250,000 cash; and
3. 3 million International Coal options valid for five years from January 12 2012 with a strike price of USD 0.35.

Strategy

International Coal is focused on developing a number of prospective coking coal and thermal coal projects throughout Queensland. This transaction provides further regional diversification of the company assets close to existing large scale operating mines.

In December 2011, International Coal expanded its footprint in the Eromanga Basin with applications for 11 Exploration Permits for Coal in the Eromanga Basin area and the surrounding region in SW Queensland.

These acquisitions show that International Coal is aggressively pursuing prospective EPCs and EPCAs in coal rich Queensland.

(Sourced from www.proactiveinvestors.com.au)