24th Aug 2015 08:35
LONDON (Alliance News) - Strategic Minerals PLC on Monday said it has entered into a deal to start bulk sampling at the Tatu Coal Project in New Zealand and is progressing towards securing funding to back construction work at the site.
The contract has been awarded through its King Country Mining Ltd joint venture, in which it owns a 51% stake, and will involve not only the extraction of coal but also the establishment of some of the safety requirements needed for Tatu to become an operating mine.
Strategic Minerals said a number of contractors are involved in the project and said it expects the total costs to be around NZD280,000.
The company is targeting completion of the bulk sampling work and feasibility studies in time for construction of the mine to begin in the first quarter of 2016. Strategic Minerals is looking to secure funding for the project and said it has now signed a non-binding memorandum of understanding with China Coal Technology Engineering Group to provide pricing and funding options for both the mine equipment and operations.
"The commencement of the production of the bulk sample is an important step in the delivery of an economically commercial coal mine at Tatu and we look forward to delivering samples to potential customers and finalising feasibility studies as soon as possible," said John Peters, Strategic Minerals' managing director.
"I believe we are well positioned to progress the Tatu project and are in discussions with potential contractors, looking to undertake the construction and operation of the mine, to potentially finance the development of the project," Peters added.
Shares in Strategic Minerals were flat at 0.325 pence on Monday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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