- Aus Tin Mining (ANW) has signed a binding term sheet with Resources and Energy Investments (REI) to acquire the Mackenzie Coal Project in Queensland
- The project is located in the Bowen Basin and next to coal mines which produced a combined total of around 8.4 million tonnes in 2019
- Mackenzie has an indicated and inferred JORC resource of 138.1 million tonnes of potential low volatile pulverised coal injection (PCI) quality coal
- Under the term sheet, Aus Tin will issue one million shares at a value of $1 million
- The company will pay $100,000 – $50,000 will be paid as a deposit and the other half once the agreement has been finalised
- The acquisition will complement the proposed acquisition of the Ashford Coking Coal Project from Laneway Resources
- While the agreement to acquire Ashford was announced in July, border restrictions have caused delays in due diligence work
- Nevertheless, Laneway and ANW have extended the completion date of transaction conditions to January 31 next year
- Company shares have soared 50 per cent on the back of this news to trade for 0.2 cents
Aus Tin Mining (ANW) has signed a binding term sheet with Resources and Energy Investments (REI) to acquire the Mackenzie Coal Project in Queensland.
The Mackenzie Coal Project is located in the Bowen Basin and is adjacent to existing infrastructure and coal mines with collectively produced around 8.4 million tonnes in 2019.
The project has an indicated and inferred JORC resource of 138.1 million tonnes of potential low volatile pulverised coal injection (PCI) quality coal. This resource was reported by the previous owner, Moreton Resources, and was based on 31 drill holes targeting four main seams at a depth of between 250 and 450 metres.
“Aus Tin Mining is extremely excited by the opportunity to acquire Mackenzie and its substantial coal resources located in the engine room of Queensland’s coal industry,” Director Nicholas Mather said.
Under the term sheet, Aus Tin Mining will issue one million shares at a value of $1 million. It will also pay $100,000, with $50,000 of this to be paid as a deposit and the other half upon completion of the agreement.
Aus Tin claims this acquisition will complement the proposed acquisition of the Ashford Coking Coal Project in New South Wales which was announced in July this year.
“Mackenzie and Ashford will provide commodity diversification and growth opportunity for Aus Tin Mining to create shareholder value,” Nicholas added.
While an agreement was signed back in July regarding the Ashford acquisition, the company has only recently visited the site for the first time due to border restrictions. The site visit allowed ANW to complete technical due diligence which is part of the conditions to acquire the project from Laneway Resources.
Additionally, the parties have agreed to extend ANW’s entitlement offer to raise $1.2 million and to convert at least $1.66 million worth of debt into equity. The date for the transaction conditions to be completed has been extended to January 31 2021.
Company shares have soared 50 per cent on the back of this news to trade for 0.2 cents at 2:25 pm AEDT.