Under the terms of the agreement, the two companies will begin an exploration program to complete proving the Clermont coal resource and then to bring the deposit into production.
Following completion of the agreement, Australian Pacific Coal will transfer its South Clermont tenement into a newly formed corporate entity.
Initially, Australian Pacific Coal will hold 50% of the equity in the new entity which will raise funds as well as perform the exploration and development of the project.
A preagreed management fee will be paid to Australian Pacific Coal for services that it provides to the operation.
Focused on the exploration and development of metallurgical and thermal coal projects, ustralian Pacific Coal has interests in 32 coal exploration tenements strategically located in south-east Queensland’s Bowen and Surat Basins.
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