Australian Pacific Coal (APC) and Linchpin Capital Group have signed a non-binding heads of agreement to jointly develop the South Clermont coal exploration tenement in the Bowen Basin coal fields.
Under the terms of the agreement, the two companies will initiate an exploration program to complete proving the Clermont coal resource and then to bring the deposit into production. Initial indications show that this has the potential to be an open cut operation.
On completion of the agreement, APC will transfer its South Clermont tenement into a newly formed corporate entity, which will raise the funding for and will conduct the exploration and development of the project.
APC will initially hold 50% of the equity in the new entity, and will be paid a pre-agreed management fee for services that it provides to the operation.
Australian Pacific Coal has interests in 32 coal exploration tenements located in Queensland's Bowen and Surat Basins.
Edited from various sources by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/26022014/apc_to_develop_south_clermont_coal_tenement_566/