MMEX and its Colombian partners now have a final amendment agreement for its 50% interest purchase in the Boyac Province venture, its first metallurgical mine in the South American country.

Company chairman and chief executive officer Jack Hanks confirmed the size of the project has also been expanded, as amended permits issued by regulators for the concession will allow up to 1.6 million tons of coal.

“We are anticipating closing on our exclusive option agreement by February 29, 2012,” Hanks said, adding the agreement to close is completed and the final steps of financing have begun.

MMEX said in November that it would move ahead with the Colombian venture following major strides in its financial position.

Consultant Norwest evaluated the three titles’ potential coal tonnage and submitted a technical report in April, which estimated 45 to 50 million tons of high quality, medium volatility met coal in place.

MMEX changed its name from Management Energy in February 2011 and announced at the same time it would make its first foray into met coal in Colombia.

Hanks also confirmed last year that MMEX was in early-stage discussions to be involved in infrastructure development opportunities, including consolidation and transportation of met coal to the Pacific and Caribbean ports of Colombia.

In December 2010 the company began exiting coal in the US when it sold the Snider Ranch thermal coal property in Montana, then the Carpenter Creek thermal coal assets in the same state.

Headquartered in Dallas, the company is publicly traded on the OTC under MMEX.OB.