Under the revised transaction, NuCoal will acquire the Plashett exploration lease based on a JORC inferred resource determined down to 200m below surface by issuing 35 million fully paid shares to Bloomfield subsidiary Big Ben Holdings (BBH) on completion of the deal.
In addition, a variable number of ordinary fully paid shares will be issued on the identification of a JORC compliant inferred resource benchmarks.
Completion of the transaction is subject to certain conditions, including ASX approval, NuCoal obtaining shareholder approval, ministerial approval, renewal of EL6705, and land access and compensation agreements being obtained over the area covered by the proposed drilling program.
NuCoal managing director Glen Lewis said the Plashett project was a significant step for the company and was close to major infrastructure in the Hunter Valley.
Approximately 70 boreholes have been drilled historically on the Plashett tenement, indicating the presence of 20 seams with potential for semi-soft coking coal and high-quality thermal coal.
“The finalisation of the revised terms with BBH is a significant milestone for NuCoal,” Lewis said.
“The Plashett Project is strategically located between NuCoal’s existing projects at Doyles Creek and Savoy Hill, and offers considerable development, operational and financial synergies. NuCoal looks forward to commencing the Phase 1 Drilling Program at EL6705, which comprises a total of 10 drill holes with the objective of determining a maiden JORC Inferred Resource.”