C @ limited to acquire 8 exploration licenses

C @ Limited will acquire eight Mongolian coal licenses for USD 7.8 million as a result of its agreement with Peabody-Winsway Resources to acquire all of the issued capital of its subsidiary, BDBL.


The licenses cover 625 square kilometers in a major emerging coal province.

The region is characterized by a number of recent major black coal discoveries on the doorstep of the expanding Chinese steel and energy markets. A number of the licenses are close to existing producing assets and infrastructure with close proximity to major energy markets like China and Russia, which make the economies of this favorable to the company, said the firm. Initial raw coal quality tests at both Mongolian and Australian laboratories have confirmed high quality coking properties both near the surface and at moderate depths. The quality could likely be enhanced by washing. Upon completion of the acquisition, C @ Limited will immediately begin the second phase of its exploration program which will include geophysics and drilling. The firm will focus on the Teeg license located in Uvurkhangai, where it discovered two significant coal seams during the first phase of exploration.

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Source : Business Council of Mongolia

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