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LONDON (Alliance News) - Strategic Minerals PLC on Tuesday said it has struck a deal to acquire the Tatu Coal Mine project in New Zealand and said it has signed a memorandum of understanding for a coal project in China.
The company said it will acquire the Tatu thermal coal project for NZD255,000, around GBP128,000, with the majority of the consideration due by way of future royalties.
It expects production cash flows to start within one year of the full acquisition, the planned production levels to be around 200,000 tonnes per year upon completion of the mine shaft.
Elsewhere, the company has signed a memorandum of understanding with Tao Nan City Wanbao Mining Power Ltd Co in relation to the Wanbao coking coal mine in the Jilian province of China.
The agreement provides for a six month exclusivity period for due diligence and it noted the coking coal mine is situated in close proximity to two major steel mills in China.
Shares in the company were up 17% to 0.73 pence on Tuesday, one of the best performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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