The license is located in the Zambeze coal basin in Mozambique and contains potential for 25.8km2 coal bearing in Lower Karoo sediments, with target mineralization between 1.86 to 2.32 billion tonnes.
Mozambi will pay initial pay $25,000 to Xiluva on signing MOU for surface tax and bonds, and pay another $25,000 submission of an application requesting the transfer of 2738L to the National Directorate of Mines in Mozambique.
Mozambi will make the final payment of $1.25m on successful transfer of 2738L and the completion of legal and technical due diligence by Mozambi.
To fund the acquisition, Mozambi will negotiate a private placement with major shareholder Polo Resources.
