PERTH (miningweekly.com) – Coal developer Modun Resources has sold its Nuurst thermal coal project, in Mongolia, for some $2.21-million.
In November last year, Modun announced a highly conditional sales agreement under which it would dispose of the project to an unnamed Mongolia-based buyer for $8-million; however, after being unable to reach consensus on the terms of the agreement, the transaction was terminated.
Instead, Modun undertook negotiations with other companies and, earlier this month, reached an agreement to dispose of its subsidiary Modun Resources LLC, which holds the Nuurst project, to two Mongolian nationals.
The first $100 000 of the cash consideration would be paid on exchange of contracts and would act as a deposit.
The completion of the transaction was subject to shareholder approval at an upcoming shareholder meeting on July 30.
The Nuurst project covers some 3 451 ha under exploration licence and is situated 6 km from existing rail infrastructure. The project has a Joint Ore Reserves Committee-compliant resource of 489-million tonnes, of which 417-million tonnes is classified as indicated.