Under the agreement, Grange will be the manager of the joint venture and will carry out due diligence and test work on the Inderapura coal prospect.
“Grange will undertake initial due diligence and site inspections within three months and, upon satisfaction, both parties will enter into a formal joint venture agreement for the purpose of exploring, developing and, if warranted, mining the area of the coal tenements,” Coziron said today.
Grange will earn a 50% interest in the Inderapura coal tenements by spending a minimum of $1 million on exploration expenditure within an 18-month period.
“If Grange fails to spend $1 million within the 18-month period, it will not earn any interest in the coal tenements,” Coziron said.
The joint venture area comprises the Inderapura and Tapan coal tenements, which form a contiguous block and cover an area of Lemau Formation sediments which are part of the northwest extension of the Bengkulu Basin.
The Bengkulu Basin coals are the source of major current coal mining operations.
Upon earning a 50% interest in the coal tenements, Grange will issue 100,000 ordinary shares to Coziron.
“Coziron believes the project area is highly prospective and that there is significant potential to host a high tonnage resource of quality coal,” the company said.
“Grange’s board of directors and senior management have extensive experience spanning mineral exploration and geology, project development and management, finance, investment banking and funds management.”