They also agreed to issuing $5 million worth of new shares in a Patersons Securities-managed capital raising.
“The move into US coal involves the purchase of the privately owned company Texas and Oklahoma Coal Co Ltd, along with the option to acquire up to 80% of the P8 coal mine in Oklahoma, and coal licences and licence applications that have in-situ coal JORC exploration targets of between 697 million tonnes and 1,031Mt,” Metals Finance said.
The company said the weekly labour costs per miner in the US averaged about $1034 compared to $2700 in New South Wales.
“We want to leverage that cost advantage with operational and safety expertise that we can bring to bear from Australia.”
MF aims to target domestic markets and expand output at the P8 mine, before looking to upgrade the coal to metallurgical grade standards for potential export markets.
The company is also a Canadian coal explorer and was granted six licence applications in British Columbia last month.
