The near-term coal producer said it would sell the Ora Banda assets conditional on Winchester raising $A2 million via an initial public offering on the Australian Securities Exchange.
The sale is also conditional on Winchester receiving approval to officially list on the ASX within six months from the date of sale.
As consideration, Jameson will receive $10,000 and the issue of 750,000 fully paid ordinary shares in Winchester on listing.
The Ora Banda project, 65km northwest of Kalgoorlie in Western Australia, includes four separate blocks of prospecting licences covering some 27 square kilometres.
Jameson said the divestment would enable it to focus on recommissioning the Basin thermal coal mine in British Columbia that ceased mining in 2006 when the provincial government abolished the use of coal power plants.
The coal resources of the Basin coal mine were previously calculated in accordance with the requirements of National Instrument 43-101, equivalent to JORC reporting standard, at an estimated measured and indicated resource of 19 million tonnes.
Basin’s operating costs are estimated at approximately $US50 per tonne.
Jameson said the Basin project had the potential to develop into a 1Mt per annum coal operation.
