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Bowen Coking Coal and Sumitomo look at earn-in

7th October 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Bowen Coking Coal has struck a non-binding term sheet with a subsidiary of Sumitomo Corporation, over the Hillalong coking coal project, in Queensland.

The two companies have agreed to negotiate the terms of a formal and legally binding earn-in agreement, under which Sumitomo could earn an initial 10% interest in the project by spending A$2.5-million on exploration, and the right to earn an additional 10% interest by providing a further A$5-million in funding.

“We are delighted to have attracted a partner of the caliber of Sumitomo, who brings a wealth of experience and significant financial backing in the global coal mining, trading and related steel industries,” said Bowen Coking Coal MD Gerhard Redelinghuys.

Hillalong spans over some 99 km2 of tenement area and has an exploration target of between 61-million and 409-million tonnes.

Edited by Creamer Media Reporter

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