Ballarat-based gold explorer MRG Resources says it has finalised an agreement to acquire a 100 per cent interest in a suite of highly prospective coal and bauxite tenements near Collie.
MRG said today that acquiring the Collie South coal project was a low risk strategy that would cost $50,000 cash and 1 million shares, with options to acquire a 100 per cent interest over three years.
The Collie coalfields have known reserves of 2.4 billion tonnes, and confirmed resources in excess of 700 million tonnes.
MRG said the 101 blocks covering Collie South had similar geological settings to existing operating coal mines.
The company said it would not commit to a rapid exploration program.
Its stock rocketed today, up 17 per cent to 48 cents at close of trade.