Under the terms of the agreement QCI is able to earn up to a 51% interest in International’s Bundaberg Project tenements EPC 2194, 2195, 2196 and the EPC application 2631 through sole funding exploration expenditure of up to $3 million.
QCI can earn 25% interest through the staged development and expenditure of $1.5 million and a further 26% through the expenditure of a further $1.5 million.
In addition to the earn-in payments, the terms of the agreement also require QCI to pay to International $2 million upon attaining the 51% interest in the project.
Director of International David Round said “we believe the experience and professionalism of the QCI team can add enormous value to the developments of the tenements.”
“We believe this agreement is the commencement of a constructive and successful relationship between QCI and ICX [International].”
The tenements, which are located 45 km the north of the proposed New Hope Energy Colton Mine, have the potential for a coking coal discovery and contain two target exploration coal-bearing units – the Burrum Coal measures and the Maryborough formation, according to a report by the Moultrie Group.
The principal target is Cretaceous hard coking coals and several exploration targets were determined with an Exploration Target of 280Mt – 370Mt.
International has completed negotiations with the majority of landowners within the project area and lodged compensation agreements with the Queensland government.