Fitzroy Resources (ASX:FRY) has executed an option agreement to acquire 100% of Premier Coking Coal Limited, a U.S. based, privately owned coal exploration and development company.
Premier holds an option to acquire the Emmaus project which covers 4700 acres of prime coking coal territory in the Appalachian Basin, West Virginia.
A new in-country team has been established and diligence drilling to twin historic holes is to commence within weeks.
Under the terms of the agreement, Fitzroy will pay $150,000 to secure the option, and will spend up to $400,000 on confirmatory work to demonstrate the commercial merit of exercising the option.
The deal propels Fitzroy into the coking coal sector in the U.S., where it believes coal will have its day given development cost advantages, and with it demand from China.
For a company with a market cap of only $1.5 million, that controls two highly prospective copper-zinc projects within Australia, and good cash position at the 30th of June, this is an interesting development.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.
