Bathurst Resources Ltd (ASX: BRL) has confirmed it is proceeding with another Australian-listed company Jameson Resources Ltd (ASX: JAL) that it will proceed with a coal venture in Canada.
Bathurst, now New Zealand’s leading coal producer of both coking and sub-bituminous coal, is taking up the first tranche of the joint venture on the Crown Mountain coking coal project.
To initiate this Bathurst is contributing $C4 million ($NZ4.497 M) to a first-stage exploration project that gives it 8% equity in Jameson’s subsidiary NWP Coal Canada Ltd (NWP).
Should this prove positive, the second tranche would see Bathurst investing $C7.5 M in a bankable feasibility study and then on tranche 3, a further $C110 M to project construction.
By reaching the $C121.5 M investment, Bathurst would hold 50% of the Crown Mountain venture.
Bathurst chief executive Richard Tacon said the Crown Mountain investment would diversify Bathurst’s production into the export market and complement the range of products already sold into Asia.
“Staging the investment has de-risked the project for Bathurst as further investment is at its sole direction, ensuring directors can continue to seek optimal returns for Bathurst shareholders,” Tacon added.