The three-year agreement, covering 31 exploration properties in Colombia, grants BHP Billiton the option to earn a 50% interest in any particular deposit discovered, by sole funding 100% of exploration expenditures, subject to an annual minimum of $2.5 million until the completion of a pre-feasibility study.
BHP Billiton can earn a further 10% in the deposit by funding all expenditures through completion of a feasibility study and assisting Coalcorp in arranging the finance for its share of development costs.
Coalcorp is a coal mining, exploration and development company with interests in the La Francia and La Caypa coal mines and related infrastructure projects and a number of coal exploration properties, all located in Colombia.
