The agreement for the purchase of the assets is subject to consent to assignments of several permissions, and the approval of the Minister of Energy to the transfer of the permit.
Consideration is a $450,000 payment on final settlement, with a further payment of $150,000 which will be made one year from the date of settlement.
Canterbury is an open cast mine near Coalgate which is 70 kilometres west of Christchurch, New Zealand, and produces thermal coal that is low in sulphur and ash and has high demand from the local dairy and food processing industries.
Bathurst Resources has been operating the mine under a binding Heads of Agreement as part of a due diligence evaluation.
Bathurst also secured a three year contract to supply nearly 55,000t of coal a year from the Canterbury Coal mine to a local dairy producer.
Bathurst managing director Hamish Bohannan said that the latest acquisition and new supply contract further strengthen the growth of the company’s domestic sales.
"Coal demand in the Canterbury area is set to grow to over 150,000 tonnes per annum in the short term. The proximity of the mine to these markets gives us a distinct freight advantage over our competitors to target this growth potential," Bohannan added.
Recent drilling at Canterbury Coal Mine identified a coal resource of 3.3 million tons.
