The deal between Bandanna and AMCI covers an area just south of the Alpha township and is an extension of an existing agreement between the two companies.
To date AMCI has already drilled 50 bore holes and spent $1.83 million on exploration at the project.
Under yesterday’s deal, AMCI will pay $1 million for a 2% interest in the Alpha Project and has the option to earn an additional 48% interest by spending up to $24 million on JV activities.
Explorer Bandanna is on the verge of being taken over by fellow junior Enterprise Energy for $A241 million with a decision expected next week.
Enterprise Energy said the agreement was seen as a “strategic milestone” given AMCI is a major coal explorer and developer of international coal projects.
