The revised terms will provide additional equity in the north Queensland coal project to facilitate capital raising, according to Bounty.

Under the original farm-in agreement, Bounty had the option to earn up to a 40% equity position in the project by expenditure on resource delineation, pre-feasibility and feasibility studies and finalisation of an environmental impact statement (Phase 1, 2 and 3 works).

Bounty also had the right to acquire a further 11% equity in the project through a capital investment to reach a 51% position.

Following the variation to the agreement, Bounty now has the option to earn up to a 48% equity position by completing the Phase 1, 2 and 3 Works, and the right to acquire a further 3% equity through capital investment to reach the same 51% position.

Coke oven test results confirm the existence of a premium quality hard coking coal within at least the Birthday Plains resource area at Wongai.

Indicative coke strength after reaction results are high, compared with other Australian hard coking coals, the company said.

Chairman Gary Cochrane said that further coke oven testwork was needed to determine coke strength properties.