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Bounty signs on for Wongai development

26th September 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Coal miner Bounty Mining has signed a farm-in, joint venture and management contract over the Wongai coal project, in Cape York.

Under the agreement with Aust-Pac Capital and the Kalpowar traditional owners, Bounty could earn a 40% interest in the project by defining a resource, and conducting prefeasibility and feasibility studies on the project, as well as finalising an environmental-impact statement.

ASX-listed Bounty also had the right to acquire a further 11% equity in the project prior to construction.

Bounty has been appointed mine manager of Wongai for the life of the project.

“This is a company-transforming event for Bounty and offers a long-term secure role should the resource delineation prove that an economically viable mine can be developed,” the company said.

The mine has an inferred resource of 67.5-million tonnes and is expected to produce 1.5-million tonnes a year of coking coal. Coal would be trucked to a northern barge loader where it would be barged and transshipped offshore into ocean-going vessles.

Bounty told shareholders that it was planning a drilling programme to assist with the initial scoping study and to identify key sites for portals, truck haulage and the barge loader.

The company also flagged a planned capital raising to fund the project.

Edited by Creamer Media Reporter

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