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Market:ASX
Sector:Coal
EPIC:MTE
Latest Price: 0.32  (8.62% Ascending)
52-week High:0.97
52-week Low:0.28
Market Cap:32.17M
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MetroCoal

MetroCoal (ASX: MTE) is an emerging Australian coal-based energy company focused on projects in the Surat Basin in South East Queensland.

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MetroCoal to commence exploration, after China gives funding approval

Monday, September 13, 2010
MetroCoal to commence exploration, after China gives funding approval

MetroCoal (ASX:MTE) has announced that China Coal Import & Export Company (CCIEC), a wholly owned subsidiary of China National Coal Group Corp (China Coal), has advised that they have received approval from The State Administration of Foreign Exchange for the transfer of $30 million to China Coal's Australian subsidiary.

This is the final major approval required from the People's Republic of China for China Coal's $30 million joint venture with MetroCoal on its Columboola tenement (EPC1165) near Miles in the Surat Basin.

The transaction has been approved by the Foreign Investment Review Board (FIRB) and the joint venture agreement (JVA) will now become unconditional upon the Minister giving indicative consent to the assignment of a 51% interest in the tenement to CCIEC.

Mike O'Brien, chief executive officer, said Coal CEO Mike O'Brien said the company was now on the verge of starting the joint venture with China Coal. “As soon as funds are received, exploration will be commencing on the Columboola coal project.?

Under the terms of the JVA, CCIEC acquires a 51% interest in MetroCoal's EPC 1165 Columboola in the Surat Basin, Queensland for an agreed expenditure commitment of A$30 million on EPC 1165.

The funds will be used for exploring and evaluating the potential for future commercialisation options within the Columboola tenement and also opens up the opportunity for participation in MetroCoal's other tenements.

The Columboola JVA requires a minimum expenditure of $4 million within the first two years of the agreement.

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