December 17, 2017

Queensland Bauxite shows interest in Mozambique coal licences

Queensland Bauxite has announced that it would buy an interest in two Mozambique coal exploration licences in the Zambezi basin, close to majors such as Vale and Rio Tinto.

The junior said it had signed a binding term sheet with Australian unlisted company Regius Coal Mining to acquire an initial 35percent interest in its subsidiary, Regius Coal SPV, which held interests in two exploration licences in the Tete province, for US$750, 000.

Eighteen months after completion of the initial subscription, Queensland Bauxite would have the right to subscribe for a further 16 percent of the issued share capital in Reguis Coal for an aggregate amount of US$1.2million in one or more tranches, with the percentage interest that it acquired in Regius Coal SPV being adjusted to 51 percent.

The transaction remained conditional upon, among others, Regius Coal completing the restructuring of its holding in the Regius Coal SPV portfolio, so that the interest in the licence, the subject of that portfolio, was legally and beneficially owned by the Regius Coal SPV.

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