The deal was completed March 7 via an exclusive option agreement, the company said Thursday.

Hunza, located in east-central Colombia about 200km northeast of Bogota, is accessible by road and includes three coal titles making up a tenure parcel of 567.8 hectares.

MMEX confirmed that active underground operations were already being conducted at one of the blocks following an April 2011 technical report submitted by US consultant Norwest reflecting “reasonable” in-place high-quality, medium-volatility metallurgical coal tonnage.

Hunza is permitted to produce up to 1.6 million tons per year.

“The acquisition of our 50% interest in the Hunza mine represents a major achievement for MMEX and adds significant value to the company,” president and chief executive officer Jack Hanks said.

“We are very optimistic about the potential of the property and look forward to start developing it and report our progress in the coming weeks."

The explorer announced it had entered final negotiations for the interest purchase early last month.

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

The company 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 last year confirmed 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 Over the Counter securities market under MMEX.OB.