Mongolia based Tian Poh Resources is planning to buy Modun Resources’ Mongolian coal assets in a deal valued at $2.21m.

Modun Resources previously announced that it sold Nuurst thermal coal project to two Mongolian buyers but the deal did not materialise because the company did not receive the $100 000 cash consideration, which was to be paid on the exchange of contracts.

Tian Poh is expected to pay $100, 000 to buy the project and the remaining $2.1m is expected to be paid to acquire debt financing provided for the project.

The company has paid $100, 000 and is expected to process the rest of the transaction within 14 days.

Tian Poh is planning for immediate development of the project which reportedly has coal resource of 478.3 million tonnes.

The project’s exploration licence covers around 3 451ha and is situated 6km from existing rail infrastructure.

It also has a Joint Ore Reserves Committee-compliant resource of 489-million tonne, reports