Under the terms of the accord, Andean Coal can earn the 51% Escalones interest by investing $830,000 in exploration and development of the property by 30 December 2014 while Carbhid will remain the operator of the property.
Andean Coal is owned 50% each by Lara Exploration and its coal alliance partner, Kiwanda Mining, Lara Exploration said.
Lara Exploration and Andean Coal have invested approximately $330,000, since December 2012, for the Escalones property development to acquire a 19.9% interest in Carbhid.
The funds were invested to develop the El Diamante and Carbhid 2 mines.
Earlier this month, Carbhid started development of a third inclined shaft, known as Carbhid 4, which will access the La Cisquera coal bed while the Escalones block’s long term goal is to reach production of 15,000 tons per month.
The Escalones property includes a 90.58h portion of Mining Concession Agreement FGL-111, located in the coal producing Boyacá Region of Central Colombia, according to Lara Exploration.
