Condor Energy has signed a heads of agreement to acquire a 50.3% interest in the Duel hard metallurgical coal project and Tshipise 2 project in South Africa. The company will purchase the projects from Hong Kong-based Signet Coking Coal.
Condor will borrow up to €10 million from a European financial institution to fund the development of the two projects.
Under the terms of the acquisition, which is still subject to approval, Condor will invest US$ 5 million of the debt funding to acquire an initial 24.4% interest in Signet.
Condor then hopes to conduct a series of drill tests at the Duel project.
If results of the drilling programme are acceptable, Condor will then buy a stake in the Tshipise 2 project.
Dr Paul Crosio, Condor chairman, said the company is securing debt funding by diversifying risk, where possible. “We have actively sought to diversify risk and have identified a suitable project in South Africa, which is on track to prove a significant hard metallurgical coal resource in 2014.”
“As we move from heads of agreement we will continue extensive due diligence on the asset but, at this stage, independent review has encourages us to move forward on this joint venture.”
Edited from various sources by Sam Dodson
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