Fitzroy Resources (ASX: FRY) has amended the terms of an option agreement to acquire hard coking coal assets in the U.S. that reduces the consideration while increasing the property area.
The company will now pay US$805,000 in cash, 30 million ordinary shares and 20 million performance shares to acquire Premier Coking Coal, which now has options to acquire the Emmaus, Blackstone leases and Deep Mine Permit in West Virginia.
This compares with the original consideration of US$1.6 million, 55 million ordinary shares and 55 million performance shares for just the Emmaus lease.
The leases contain prospective coal seams that outcrop on hills within the Appalachian Basin that have a short term target to commence low capital expenditure production through the use of third party processing close to the property.
Permits already exist on property for mining, plant, refuse disposal and rail loading.
Emmaus was last mined in the late 1990s by Virginia Crews, producing mid-volatile, hard coking coal.
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