The stock climbed 15c to an intraday high of 95c after Blackham announced in a statement that the JV partners would seek to acquire the project sometime during the next eight months, with Blackham to fund the cost of the acquisition.

The JV partners will receive a 40% free-carry through to completion of bankable feasibility study as well as $US5.5 million ($A6.7 million) in cash, 5 million shares and 5 million options in Blackham in return for locating the asset, performing due diligence and facilitating the acquisition of the project.

An expert consultant has been engaged to review the data with a view to producing a JORC-compliant resource for the project.

Under the terms of a memorandum of understanding signed last December between Blackham and one of the JV partners, Marr Group Holdings, the latter can subscribe for up to 3.855 million Blackham shares at 26c each to raise $1 million, which will be used towards acquiring the coal project.

The Marr Group has interests in areas including construction and land development and investments in coal, oil and energy sector as well as international trade finance and private equity investment.

Blackham said it was not able to disclose any further details regarding the project at present, “as any premature disclosure may be prejudicial to the company’s negotiations and interests”.

International Longwall News was unable to contact a representative from Blackham prior to publication.

Shares in Blackham have since slipped back to 92c.