The deal was priced at 13.5c per Tiaro share when announced yesterday, up 50% from Monday’s close of 9c.

Yet the transaction took place on Friday – making the deal a 93% premium to Tiaro’s 7c per share closing price of the day before.

ICP chairman Mick Aw explained the rationale for the acquisition.

“ICP regards the acquisition as an opportunity to participate in the Australia coal exploration and mining industry and considers Tiaro Coal a compelling investment,” he said.

“The acquisition will also be a catalyst for a strategic relationship with [Tiaro’s major shareholder] China Qinfa Group Limited, a group that has coal trading and coal mining assets in China, which may bring further opportunities in the development of coal resources across Asia and Australia.”

Tiaro managing director Dan Buckley was heartened by the confidence shown by ICP.

“We are confident that with such formidable support, Tiaro Coal will be able to move forward with its plans to develop a viable coking-pulverised coal injection coal mine in Queensland,” he said.

Prefeasibility study work is underway for the T9 West metallurgical coal project in southeast Queensland’s Maryborough Basin, held by Tiaro subsidiary Paragon Coal.

The PFS for the open cut project is expected to be completed in a September-December timeframe.

The T9 West area includes an 87 million tonne resource (4Mt measured, 21Mt indicated and 63Mt inferred) in the T9 West area 2.

Tiaro shares were up 2.2%, or 0.2c, to 9.5c by 1pm AEST.