New Age Exploration (NAE) has entered into binding agreements to acquire two exploration and mining concessions within the Cesar thermal coal basin in Colombia through the NAE-Aurora Energy partnership.

Under the terms of agreement, NAE will pay of $200,000 initially on signing the agreement and pay $200,000 on completion of 90 day due diligence period.

The firm will also pay about $25m for the total measured resources in the basin, along with $1m for commencement of commercial production.

Cesar thermal coal basin covers a total area of 4,141 hectares and consists of number of major open cut export thermal coal mines in which the economic coal seams are hosted by the Middle Los Cuervos formation .

Currently Cesar Basin produces about 40 million tons per annum and will be increased to 75 million tons by 2015.