VANCOUVER, Feb. 23, 2012 /CNW/ - Global Met Coal Corporation ("Global Met Coal") (TSX.V: GMZ) (FWB: B1H) announces that it has signed a binding Memorandum of Understanding ("MOU"), with Aspire Mining Limited ("Aspire Mining"), an Australian Securities Exchange listed company, to work together to mutual benefit in the pre-development, development and operation of the Mogoin Gol and Ovoot Coking Coal projects, located in the Ovoot Basin, northwest Mongolia.
Under the terms of the MOU, Global Met Coal has agreed to provide Aspire Mining with access to existing open pit mining operations at the Mogoin Gol Coking Coal project for the collection of information and bulk samples to be used by Aspire Mining in its prefeasibility-stage Ovoot Coking Coal Project which surrounds and adjoins the Mogoin Gol property. Aspire Mining will have access to all historical coal quality data produced as a result of coal sales from the Mogoin Gol Coking Coal Mine and bulk samples of suitable coal quality for test work purposes, including washability and coke oven test work, and for market development purposes.
Aspire Mining will make available to Global Met Coal the results of any test work and market development activities completed using coal from the Mogoin Gol pit and all information from Aspire Mining's geotechnical studies that is of direct relevance to the operation of the Mogoin Gol Coking Coal project. A National Instrument 43-101 Technical Report on the Mogoin Gol Coking Coal Deposit prepared by SRK Consulting (UK) Limited, dated December 23, 2011, and submitted to the TSX Venture Exchange, confirms that the Mogoin Gol Coking Coal Deposit is the same coal seam that runs across Aspire Mining's adjoining Ovoot Coking Coal Project.
Global Met Coal and Aspire Mining have also agreed to cooperate to achieve the following potentially mutually beneficial outcomes:
- The ability to mine coal up to the shared tenement boundary
- The rationalization/sharing of infrastructure
- The rationalization/sharing of mining fleet, and
- The use of a single mining entity/contractor
In 2010, Aspire announced an initial 330.7 million tonne JORC compliant Resource (93.3mt Measured, 182.4mt Indicated, and 55.0mt Inferred) for the Ovoot Coking Coal Project. In 2011, leading coal market consultants Wood Mackenzie, confirmed coking coal from Aspire's Ovoot Project had highly attractive properties and would easily meet the global seaborne market requirements. Wood Mackenzie's report described Ovoot coal as "A strongly caking, hard coking coal with superior blend capacity", and that hard coking coal would be an appropriate price benchmark. Aspire is currently targeting resource upgrades at the Ovoot Project, as well as progressing development of key infrastructure including access to rail.
Global Met Coal signed a letter of intent with Mogoin Gol Energy LLC ("MG Energy"), dated October 20, 2011 ("LOI"), to purchase a strategic interest in the Mogoin Gol Coking Coal Mine subject to the completion of due diligence and acceptance of the TSX Venture Exchange.
Further to the news release dated September 21, 2011 announcing the letter of intent related to the purchase by Global Met Coal of the coal project located in Jefferson County, Alabama, the vendors of the coal project have granted Global Met Coal an extension to April 30, 2012 to complete its drilling and due diligence investigations. Closing of the acquisition of the Alabama coal project is subject to the fulfillment of conditions including due diligence being satisfactory to Global Met Coal, the signing of a formal agreement by the parties, and acceptance of the TSX Venture Exchange.
In connection with the proposed acquisition of the metallurgical coal projects in Mongolia and Alabama, Global Met Coal has agreed to pay finder's fees payable in cash or by the issuance of shares having a deemed price of
.15 per share or a combination of both, subject to acceptance of the TSX Venture Exchange.