Coal news and updates

Mozambi Coal to raise funds for Queensland project

Mozambi Coal has placed 50 million ordinary shares at $0.01 per share with sophisticated investors to raise $500,000 to commence exploration at its key Queensland coal exploration licence acquired from Rio Tinto Exploration.

The placement was oversubscribed and was with 25 million free attaching $0.02 options.

Notably, Mozambi acquired 100% of the interesting looking EPC 1768 (Bowen River) tenement located in Queensland's renowned coal producing Bowen Basin, 100 kilometres west of Mackay.

Now while the license area is early stage and untested for metallurgical grades of coal, it is located adjacent to existing infrastructure in the region.

Mozambi intends to put a drill bit to work at EPC 1768, with a 3-hole, 5,000 metre RC drilling program with funds raised.

The objective is to work up a project resource estimate to JORC status.

Significantly, adjacent EPC title holders include Aquila Coal, Bowen Central Coal, Dyart Coal Mine Management and Xstrata Coal so the drill program to be carried out by Mozambi will not be short of interest.

The tenement is thought to hold potential for Permian coal from the Rangal, Fort Cooper and Moranbah Coal Measures.

With a miserly market cap of a tick over $1.3 million (pre-placement), Mozambi is poised with a short sharp drill program.

Source: proactiveinvestors Australia