PERTH (miningweekly.com) – Japanese major Sumitomo Corporate has elected to proceed with an earn-in at the Hillalong joint venture (JV), in Queensland.
ASX-listed Bowen Coking Coal and Sumitomo in November last year struck a formal farm-in agreement under which Sumitomo would earn an initial 10% interest in the project by funding A$2.5-million of exploration expenditure, with the right to earn an additional 10% by further funding A$5-million.
Under the agreement, Sumitomo will also provide support to Hillalong to secure future project development funding.
Bowen Coking Coal on Monday said that the company had now received the initial A$2.5-million payment from Sumitomo.
“We are extremely pleased with the move towards a JV with a very capable partner like Sumitomo. Not only does it demonstrate confidence in Hillalong’s potential, but it also formalizes the relationship to achieve the future milestones in the development of the project,” said Bowen Coking Coal MD Gerhard Redelinghuys.