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Cockatoo buys out Metallica coal assets

COCKATOO Coal has finalised the purchase of Metallica Minerals’ two coal subsidiary companies for $A15 million in cash and shares.

Staff Reporter
Cockatoo buys out Metallica coal assets

Metallica today received $4.75 million in cash plus 25 million shares in the ASX-listed Cockatoo Coal, which was last trading around 47c per share.

As previously advised in late June, if Cockatoo brings any of the tenements to production, Metallica will receive further shares in the miner; and if mining commences on the Taabinga coal resource near Kingaroy, Metallica will also receive a 40c per tonne royalty of production.

Metallica's coal projects cover 3000 square kilometres of coal bearing strata, including the Taabinga Project which has a measured and indicated resource of 163.8 million tonnes of thermal coal.

Other projects include the Kingaroy, Condamine, Injune and the Surat Project, which has the potential for opencut mining and a target in situ deposit of 200–400Mt.

“This acquisition strengthens Cockatoo’s existing Surat Basin holdings, adding to its already owned Guluguba project, which is currently being core drilled and already has a 56Mt indicated coal resource defined,” Cockatoo Coal said.

Metallica managing director Andrew Gillies said the deal would give the company “excellent exposure to Queensland coal project exploration success and developments by a well managed and cashed up coal focused company”

Last week, Korean steel giant POSCO bought a $A25 million stake in Cockatoo Coal.

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