Exploration company Spitfire Resources has finalised its move to take on advanced coal projects in Tasmania with two key exploration licences, covering the Langloh and Avoca thermal coal projects, being granted.
Exploration company Spitfire Resources has finalised its move to take on advanced coal projects in Tasmania with two key exploration licences, covering the Langloh and Avoca thermal coal projects, being granted.
The granting of the tenements satisfies the final remaining condition required for the Subiaco-based company to proceed to complete stage one of the acquisition which involves the issue of 10 million ordinary Spitfire shares to the vendor shareholders of Black Rock.
Located in the Derwent Valley, north-west of Hobart, the Langloh (Hamilton) Coal Project comprises an existing JORC compliant 10 million tonne In Situ Inferred thermal coal resource within EL 28/2008, while the Avoca Project (EL 27/2008) contains known coal seams which were worked historically and explored by companies including Shell and WMC in the 1970's and 1980's.
The other properties within the portfolio, Ouse and Sandfly, remain subject to exploration licence applications.
Full announcement below:
SPITFIRE COMPLETES TASMANIAN COAL ACQUISITION
Australian exploration company, Spitfire Resources Limited (ASX Code: SPI - "Spitfire"), is pleased to announce that the two key Exploration Licences covering the Langloh and Avoca thermal coal projects in Tasmania have now been granted, clearing the way for exploration and evaluation activities to proceed.
Spitfire has been advised that Exploration Licences EL 28/2008 (Langloh) and EL 27/2008 (Avoca) have been granted by the Hon. David Llewellyn, Minister for Energy & Resources in Tasmania.
The granting of the tenements satisfies the final remaining condition required for Spitfire to complete the acquisition of privately owned company, Black Rock Energy Pty Ltd.
Spitfire reached a conditional agreement to acquire Black Rock in May of this year, these conditions being the granting of the Exploration Licences, completion of due diligence and receipt of final regulatory approvals. Now that these conditions have been met Spitfire will proceed to complete Stage 1 of the acquisition which involves the issue of 10 million ordinary Spitfire shares to the vendor shareholders of Black Rock.
The Langloh (Hamilton) Coal Project comprises an existing JORC compliant 10 million tonne In Situ Inferred thermal coal resource within EL 28/2008, while the Avoca Project (EL 27/2008) contains known coal seams which were worked historically and explored by companies including Shell and WMC in the 1970's and 1980's.
The other properties within the portfolio, Ouse and Sandfly, remain subject to Exploration Licence Applications.
Stage 2 of the acquisition will involve the issue of a further 10 million ordinary Spitfire shares to the vendor shareholders of Black Rock or a payment of $2 million in cash (or a mixture of both) at Spitfire's election on the delineation within two years of not less than 25 million tonnes of black bituminous coal either within one of the tenements or across all of the tenements combined.
Spitfire's Chairman and Managing Director, Mr. James Hamilton, said the granting of the tenements marked a further milestone for Spitfire, enabling it to complete the Black Rock acquisition and commence evaluation activities on site with a view to developing the foundations of a thermal coal export business.
"The next steps at Langloh include conducting some test work to assess the quality and characteristics of the coal. We are continuing to plan our longer term exploration and evaluation program, which will commence next year. At the same time, we have begun discussions with potential strategic partners for this project".
"We will assess the optimum strategy for advancing our coal strategy once these discussions have progressed and after taking into consideration our other exploration commitments at the South Woodie Woodie manganese project and the current financial and economic environment," he added.
