The two coal tenements EPC 2303 and 2304 lcoated near the townships of Mundubbera and Eidsvold, are now granted to be settled by the company and have an in-situ exploration target of 130-580Mt3 of thermal coal and semi-soft coking coal potential.
The final consideration for the acquisition is a deposit of $100,000, cash payment of $1,815,000, and first year rental reimbursement.
The company will pay deferred cash payment of $2,500,000 upon the delineation of an inferred JORC resource of no less than 100Mt of thermal coal with a Calorific Value greater than 5,000 Kcal/kg.
Legacy Iron chairman NK Nanda said the acquisition of the two tenements is an initial entry into the Queensland coal sector, with the remaining four tenements awaiting grant.
"An aggressive drilling program and environmental clearances are being prepared to rapidly identify a resource," Nanda added.
"Legacy is also continuing negotiations for additional investment in potential coking coal assets in Australia".
The coal projects are close to a railway line to the port of Gladstone only 21km east of the project area.
The company is acquiring the coal tenements as a part of its strategy to build the portfolio of steelmaking raw material assets.
Australia based Legacy Iron Ore is an exploration company focused on the developing iron ore and gold deposits.
