PERTH (miningweekly.com) – Japan Oil, Gas and Metals National Corporation (Jogmec) has made a A$3-million investment into ASX-listed junior Allegiance Coal for a 40% interest in its Kilmain coal project, in Queensland.
Under the terms of a joint exploration agreement, Jogmec would provide A$3-million in exploration expenditure over the next three years, with the payment to be made in three tranches.
The first activities would include seismic surveying, which would take place during September this year, at the southern part of the project area, where the coal seam was shallowest.
Allegiance MD Colin Randall said this week that the joint exploration agreement provided the company with funding for all the planned exploration expenditure over a three-year period, which included associated coal quality analysis. The funding would also allow Allegiance to build a geological model of the area, using the new data along with previous drilling and historical data within, and adjacent to, the tenement area.
The Kilmain project spans 56 km2 within the Bowen basin and has an exploration target of between 100-million and 200-million tonnes of coal.