JOHANNESBURG (miningweekly.com) – Aim-listed Beacon Hill Resources, along with Consolidated Mining and Resources, has entered into an agreement with mining investment firm Borneo Mining SA to acquire Minas Moatize, which owns and operates a coal mine in Mozambique.

Minas currently operates a 33-million ton underground mine, producing thermal coal for domestic consumption, which Beacon Hill would seek to develop into a larger openpit operation, producing both coking and thermal coal for export purposes.

“The acquisition of Minas would provide the group with a producing coal operation in one of the world’s largest undeveloped coking coal regions,” said Beacon Hill executive chairperson Justin Lewis.

He added that additional value could also be achieved through continued mine development and expansion, maximising the full potential of the coal asset.

Under the terms of the agreement, Beacon Hill had been granted an exclusivity to complete a due diligence and legal agreement to acquire Minas, for an initial deposit of $1-million.

The deposit would be offset against the proposed consideration for the acquisition, should the acquisition be completed.

Lewis noted that Beacon Hill planned to finalise the acquisition in joint-venture partnership, and was currently in discussions with potential partners, which would also be expected to enter into off take agreements for the coal to be produced.

Meanwhile, Beacon Hill has raised £1,25-million through a share placement. The proceeds of the fundraising would be used to assist in the due diligence commitments associated with the Minas acquisition.

Following their admission, the placing shares would represent 6,6% of the enlarged issued share capital of Beacon Hill.

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