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Walkabout signs MoA for Botswana coal project

World Coal,

The Australian coal explorer Walkabout Resources Ltd has signed a memorandum of agreement (MoA) with technology company Coalswana Ltd, to complete an integrated Pre-Feasibility and Bankable Feasibility study at the former’s Takatokwane thermal coal project in Botswana.

Under the MoA, Coalswana will jointly fund the studies for an integrated mine, and an ultra clean coal energy fuel beneficiation facility, at an estimated cost of US$ 10 million.

The integrated studies will include the exploration, resource drilling and engineering to complete the final resources classifications, mine planning design and the optimised detailed development programme for the Ultra Clean Coal Energy Fuel (UCCEF) production facility.

The parties are to formalise a long-term off-take agreement by 31 May 2014, with Walkabout to retain sole export rights after satisfying off-take requirements. Notably, Walkabout will remain immune to beneficiation, technical and financial risk.

Walkabout owns the largest coal asset in Botswana, and previously announced a 6.8 billion t JORC inferred resource and a 748 million t indicated resource of good quality thermal coal at the Takatokwane Coal Project.

“The securing of an On-Site Off-Take partner at Takatokwane while retaining the rights to export Off-Take is a major step forward for the Takatokwane Project,” said Walkabout Managing Director Allan Mulligan.

“While studies still need to confirm the optimal commercial and technical viability of the UCCEF process configuration, the multiple development options for Takatokwane coal significantly reduces risk and enhances project economics,” Mulligan concluded.

Adapted from press release by Katie Woodward

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