This agreement expands Carpentaria’s Galilee Basin coal tenement exposure with the injection of tenements by The Chairmen 1.

Under the agreement, The Chairmen 1 has acquired an 80% stake in Carpentaria’s wholly owned subsidiary FTB (Qld).

Carpentaria has received an upfront payment of $A300,000 and The Chairmen 1 will manage and fund exploration through to definition of an inferred resource, for a maximum expenditure of up to $A2 million.

Carpentaria chairman Nick Sheard said the company was “delighted that this agreement with The Chairmen 1 expands Carpentaria’s Galilee tenement position and brings their considerable expertise and experience in coal exploration, development and operations”.

“The Galilee Basin has been the focus of major coal export deals in recent weeks, and today’s agreement increases Carpentaria’s interest to 11,350 square kilometres of exploration applications and licences, giving the company greater exposure to the potential discovery of a thermal coal deposit.”

FTB currently holds one granted coal exploration licence (EPC) and has four applications in the northern Galilee Basin.

Carpentaria will add a further 3 EPC Applications 1573, 1574, and 1576 upon grant.

Under the agreement with Carpentaria, The Chairmen 1 will add its existing Hughenden EPC Applications 2046, 2047, 2048 and 2049 to FTB upon grant, and potentially additional prospective coal tenements that are currently under negotiation with an unnamed third party.

The Chairmen 1 aims to commence a drilling program by April 2010, subject to weather conditions.

“The funds from the agreement will be applied to the company’s multi-million dollar exploration program planned this year, focused on our Hawsons Iron Project and Euriowie Project located near Broken Hill,” Sheard said.