Emerald sold to coal explorer
EMERALD has been sold as part of a package deal with a down payment of $2.5 million.
EPC 1580, a coal tenement covering the town granted to Queensland Coking Coal on July 3, 2009, is now a key portfolio player in Newland Resources’ buy-in of six exploration permits and permit applications in the Bowen Basin.
Newland has vowed to launch an ‘aggressive’ exploration program to identify thermal and coking coal resources in EPC 1580 and its Comet acquisition, EPC 1230, which lips the township.
“The tenement portfolio is located in the Emerald-Blackwater-Rolleston region of the Bowen Basin with two key tenements situated among several existing coking and export thermal coal mining operations,” Newland said.
“The acquisition provides the company with an exciting development focus as a significant participant in the Bowen Basin coal province.
“The acquired tenements… contain up to five principal coal-bearing stratigraphic sequences.
“The coal exploration tenements are strategically located adjacent to existing coal deposits and mines, and are known to contain coal-bearing sequences with multiple seams at depths that range from surface to several hundred metres.
Three of the tenements (EPCs 1230, 1720 – Cullin La Ringo, 1580) are traversed by the Blackwater rail system, with EPCA 1505 (Spring Creek) around 30km from the Rolleston coal export rail line.
Under the terms of the deal, Newland acquires the portfolio in a four-part share and cash-based transaction.
The first payment is triggered by the execution of the agreement, with the second part of the deal paid on settlement, requiring Newland shareholder approval.
The third part is activated if at least two EPCAs are granted to Newland within four years of the deal.
The fourth part of the deal is effective if Newland successfully defines a JORC compliant resource in excess of 200 tonnes of export quality coal.
The tranche milestones will vest earlier if Newland successfully defines a JORC resource over 500 million tonnes of export coal, or, completes one or more transactions that derives a valuation of at least $150 million for the tenements.