C @ Limited moves step closer to acquisition of coal licenses in Mongolia
Perth based C @ Limited (ASX: CEO) has moved a step closer to acquiring coal licenses in southern Mongolia.
Execution of the Sale and Purchase Agreement is expected in the next 3 ‐ 4 weeks to acquire 8 coal licences located in the South Gobi province and the adjoining Ovorhangay province in southern Mongolia, covering a vast area of approximately 625km2.
As part of its technical due diligence on these licences, CEO undertook an exploration drilling program where it intersected three coal seams on the Ovorhangay licences.
The first hole produced a significant coal seam thickness of 60 metres from surface and was followed by a second hole located 280 metres away, which also intersected a significant coal seam 40 metres thick commencing at 89 metres in depth.
A further hole was drilled approximately 6 kilometres northwest from the second hole, which also intersected coal at 38 metres depth for 12 metres.
Due to time constraints and the extensive area of land under licence, exploration work on the South Gobi licences remained limited.
Furthermore no infill drilling was able to be undertaken between the coal intersections on the Ovorhangay licence. It still remains unclear if the potential coal bearing sequence in these intersections form part of the same coal seams and geological structures, or are completely different structures.
Initial raw coal quality tests at both Mongolian and Australian laboratories have confirmed high quality coking properties, likely to be enhanced by washing.
Discussions are underway to secure a drilling rig for Phase 2 of the exploration program.
Once the Company has acquired the Mongolian coal licences, it intends to immediately commence a substantial exploration program to bring the licences up to a JORC Resource.
Predominate focus will be given to the Ovorhangay licences. Exploration works will start with an extensive geophysics program which will provide critical information on the structure and will support drilling targets.
Change of Activities
The proposed acquisition constitutes a change of activities of the nature and scale contemplated by Chapter 11 of the ASX Listing Rules, the requirements of Chapters 1 and 2 of the Listing Rules will need to be complied with, and shareholder approval will be required to complete the acquisition.
The Company will make further announcements to the market and will convene a shareholder meeting to approve the necessary aspects of the transaction.
If the transaction is approved by shareholders the company’s securities will be suspended following shareholder approval until the requirements of Chapter 1 and 2 have been satisfied.
Execution of the Sale and Purchase Agreement is expected in the next 3 ‐ 4 weeks to acquire 8 coal licences located in the South Gobi province and the adjoining Ovorhangay province in southern Mongolia, covering a vast area of approximately 625km2.
As part of its technical due diligence on these licences, CEO undertook an exploration drilling program where it intersected three coal seams on the Ovorhangay licences.
The first hole produced a significant coal seam thickness of 60 metres from surface and was followed by a second hole located 280 metres away, which also intersected a significant coal seam 40 metres thick commencing at 89 metres in depth.
A further hole was drilled approximately 6 kilometres northwest from the second hole, which also intersected coal at 38 metres depth for 12 metres.
Due to time constraints and the extensive area of land under licence, exploration work on the South Gobi licences remained limited.
Furthermore no infill drilling was able to be undertaken between the coal intersections on the Ovorhangay licence. It still remains unclear if the potential coal bearing sequence in these intersections form part of the same coal seams and geological structures, or are completely different structures.
Initial raw coal quality tests at both Mongolian and Australian laboratories have confirmed high quality coking properties, likely to be enhanced by washing.
Discussions are underway to secure a drilling rig for Phase 2 of the exploration program.
Once the Company has acquired the Mongolian coal licences, it intends to immediately commence a substantial exploration program to bring the licences up to a JORC Resource.
Predominate focus will be given to the Ovorhangay licences. Exploration works will start with an extensive geophysics program which will provide critical information on the structure and will support drilling targets.
Change of Activities
The proposed acquisition constitutes a change of activities of the nature and scale contemplated by Chapter 11 of the ASX Listing Rules, the requirements of Chapters 1 and 2 of the Listing Rules will need to be complied with, and shareholder approval will be required to complete the acquisition.
The Company will make further announcements to the market and will convene a shareholder meeting to approve the necessary aspects of the transaction.
If the transaction is approved by shareholders the company’s securities will be suspended following shareholder approval until the requirements of Chapter 1 and 2 have been satisfied.
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