Australian Pacific Coal Signs Exploration Pact With Rio Tinto
22 August 2011 - 11:50AM
Dow Jones News
Junior coal explorer Australian Pacific Coal Ltd. (AQC.AU) said
Monday it has struck a deal to bring mining giant Rio Tinto PLC
(RIO) on as a partner on its Mt. Hillalong project in central
Queensland state.
Australian Pacific said Rio's exploration unit will make an
initial payment of A$2.3 million and will fund and manage
exploration worth at least A$700,000 on exploration tenement EPC
1824, with Rio holding an option to buy a 75% stake in the tenement
within the first 24 months of exploration. Australian Pacific said
it plans to transfer to Rio the title on three other tenements.
"Rio Tinto and others have major coal operations in the general
vicinity. The area is a major hub for coal mining in Queensland,
with multiple large-scale operations within 50 kilometers of the
exploration projects," Paul Byrne, managing director of the
Brisbane-based company, said in a statement.
Australian Pacific said it plans to use the funds from the deal
with Rio to continue its exploration program.
According to the company's website, previous exploration at the
Mt. Hillalong project has been superficial but the site contains
both metallurgical and thermal coal.
-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094;
robb.stewart@dowjones.com
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