- Bowen Coking Coal and M Resources will enter a coal marketing joint venture through a non-binding term sheet
- M Resources will also provide up to $15 million for the coal company to develop its Isaac River Coking Coal Project
- Managing Director of M Resources and shareholder of BCB, Matt Latimore will join the BCB board as a non-executive director
- The companies have 90 days to finalise the term sheet agreement
- Bowen Coking Coal’s shares are up 8.33 per cent and are trading for 6.5 cents each
Bowen Coking Coal has executed a non-binding term sheet with M Resources to establish a coal marketing joint venture and a finance facility of up to $15 million.
The 50/50 joint venture is aimed at marketing, promoting and selling all coking coal produced by Bowen Coking Coal’s (BCB) existing portfolio.
M Resources will provide the $15 million funding which will be used to develop BCB’s Isaac River Coking Coal Project and any other of the company’s projects.
Isaac River is located in the Bowen Basin in central Queensland.
Following BCB’s maiden exploration program in May this year, the Isaac River Resource statement was upgraded from the initial 5.3 million tonnes to 8.7 million tonnes, an increase of over 67 per cent.
“The agreement to further the relationship with M Resources, a specialist in the coking coal trading industry, can only serve to strengthen BCB’s standing in the market and ability to maximise the economic return of BCB’s current portfolio of coking coal assets,” Company Managing Director Gerhard Redelinghuys.
M Resources specialises in marketing coking coal and is managed by Matt Latimore. Matt has extensive experience in the coal industry and is a substantial shareholder in Bowen Coking Coal.
“M Resources is very pleased to partner with Bowen Coking Coal for the development of their metallurgical coal assets in Australia,” Matt said.
On completion of the term sheet, Matt will join the BCB Board as a Non-Executive Director.
“I have a strong belief Bowen has the management team and Board with a proven track record to successfully advance their significant project pipeline of high quality Coking coal assets in Queensland,” he added.
The companies have 90 days to finalise and sign the term sheet agreement.
Bowen Coking Coal’s shares are up 8.33 per cent and are trading for 6.5 cents each at 1:33 pm AEDT.