Northbridge-based Coziron Resources Ltd has signed an agreement with Perth's Grange Resources Ltd, which could see Coziron pocket $1 million after in exchange for a 50 per cent share holding of some potential coal tenements.
Northbridge-based Coziron Resources Ltd has signed an agreement with Perth's Grange Resources Ltd, which could see Coziron pocket $1 million after in exchange for a 50 per cent share holding of some potential coal tenements.
The full text of a company announcement is pasted below.
Heads of Agreement signed with Grange Resources Ltd in relation to Inderapura Coal Project
Coziron Resources Ltd ("Coziron") is pleased to announce that it has entered into a conditional Heads of Agreement with Grange Resources Ltd ("Grange") whereby Grange will carry out due diligence and test work on the Inderapura coal prospect in West Sumatra. In the event that this work is satisfactory then Grange has agreed to enter into a Joint Venture to spend $1,000,000 over a period of 18 months to earn a 50% interest in KW05191BBI ("Inderapura") and KW05192BBT ("Tapan") (herein, "Coal Tenements"), situated in West Sumatra, in the Republic of Indonesia.
A summary of the material terms of the Heads of Agreement is as follows:
- The joint venture area comprises Exploration Licenses KW05191BBI ("Inderapura") and KW05192BBT ("Tapan") (herein, "Coal Tenements") which form a contiguous block, located approximately 140 kilometres south, south east of Padang, in Western Sumatra. The Coal Tenements cover an area of Lemau Formation sediments which are part of the northwest extension of the Bengkulu Basin. The Bengkulu Basin coals are the source of major current coal mining operations.
- Grange will undertake initial due diligence and site inspections within three months and, upon satisfaction, both parties will enter into a formal Joint Venture Agreement for the purpose of exploring, developing and, if warranted, mining the area of the Coal Tenements.
- Grange will be the manager of the Joint Venture.
- Grange may earn a 50 per cent interest in the Coal Tenements by spending a minimum of $1,000,000 on exploration expenditure on the Coal Tenements within an eighteen (18) month period.
- If Grange fails to spend $1,000,000 within the 18 month period, it will not earn any interest in the Coal Tenements.
- Grange will issue 100,000 ordinary shares to Coziron upon earning a 50% interest in the Coal Tenements.
The farm in by Grange into Coziron's Coal Tenements in Sumatra is an important development. Coziron believes the project area is highly prospective and that there is significant potential to host a high tonnage resource of quality coal.
Grange's Board of Directors and senior management have extensive experience spanning mineral exploration and geology, project development and management, finance, investment banking and funds management.
The Board of Coziron welcomes Grange's involvement in the Coal Tenements and looks forward to working together.
