After gaining a shareholder vote earlier this week, Bowen Coking Coal (ASX: BCB) has completed its acquisition of the Hillalong East coking coal project from Rio Tinto Exploration and Cape Coal.
As part of the agreement, Bowen Coking Coal made a A$100,000 cash payment to Rio Tinto Exploration.
The other vendor Cape Coal was issued 30 million Bowen Coking Coal shares and reimbursed A$45,439 in legal expenses relating to Hillalong East.
The project includes two tenements, and these are awaiting final approval from the Queensland Government to be transferred into Bowen Coking Coal’s wholly-owned entity Coking Coal One’s name.
In February this year, Bowen Coking Coal inked an agreement to acquire Hillalong East, which is adjacent to its Hillalong project.
In addition to the project’s proximity to Hillalong, it is close to Hail Creek mine lease and requisite infrastructure.
Rio Tinto’s exploration of the tenements has identified the same coal seams that are found at Moranbah and Rangal Coal Measures.
However, the Hillalong East coal seams are at shallower depths and have been distinguished 24m below surface and extend at depth to more than 370m.
Xenith Consulting has been engaged to undertake preliminary exploration including collating all available data on Mt Hillalong and Hillalong East.
The data will be analysed to identify exploration targets.
About Bowen Coking Coal
Bowen Coking Coal wholly-owns several coking coal projects in Queensland’s known coal producing region.
The company owns a 100% interest in Comet Ridge, Cooroorah, Hillalong and now Hillalong East. Additionally, Bowen Coking Coal has a 15% stake in the Lilyvale and Mackenzie projects in the basin.
To-date, the company has built up a global resource inventory in the Bowen Basin of 190 million tonnes coking coal, with Cooroorah contributing the majority of the resource base at 125Mt.
Cooroorah is the most advanced project and is close to Wesfarmers’ Curragh mine which lies in the Rangal Coal Measures.
Bowen Coking Coal is currently undertaking concept mining and costing studies into developing Cooroorah.
The company’s strategy is to become an Australia coking coal producer to feed the global steelmaking industry, which it views as critical part of advancing growth.