Under a newly signed memorandum of understanding, both Saturn and the privately owned partner, which focuses on coal-to-liquid fuel development, will go through a due diligence phase that will allow them to review assets and evaluate possible arrangements.

Once a coal supply deal or other development agreement is established, Saturn will exclusively supply the partner with at least seven million tons of sub-bituminous coal, or an equivalent energy content, annually for a minimum of 25 years.

The partner, which has been actively working to secure assets in Canada since 2009, confirmed it will remain unnamed during the due diligence period because of legal agreements and its desire to remain competitive.

“We would like to thank our First Nation partners for taking the steps to initiate the dialogue between the coal partner and Saturn and Inowending, and we look forward to advancing the development strategy and market for the Saskatoba coals,” Saturn president Stan Szary said.

Saturn has a strategic ownership in First Nations-owned Inowending Exploration and Development.

Since 2009, the company has made two coal discoveries at the Saskatoba Project, including an 89-meter thickness seam – one of the thickest ever encountered in Canada.