Australian mineral resource company Metallica Minerals has sold 9 million shares in its subsidiary MetroCoal to the Chinese DADI Engineering Development Group’s Hong Kong subsidiary.
The sale has netted Metallica a $4.5 million cash boost which will be funnelled into the company’s advanced NORNICO nickel-cobalt-scandium project northwest of Townsville in northern Queensland. This brings the company’s cash reserve to in excess of Aus$12 million for the start of the 2012 calendar year.
Metallica continues to hold around 30% in MetroCoal and intends to maintain its share for the remainder of the year. MetroCoal owns several large thermal coal projects in southeast Queensland’s Surat Basin, covering about 4000sqkm down dip of well known resources such as Wandoan, Elimatta and Cameby Downs. The Macalister upper coal seam is continuous over most of the company’s tenements with seam thickness ranging from 2.5 metres to 4.5 metres.
Geological information from historical drill and its own programs has led MetroCoal to expect to identify a JORC coal resource of at least 2 billion tonnes within the next two years, suitable for underground mining.
The DADI group was established in Beijing in 2008 with 10 member companies. It boasts the necessary expertise and resources to offer turn-key solutions to the coal industry for mining consultancy, feasibility and investigations, design, system integration, plant operation and maintenance for open-cut mining.
The Hong Kong-based DADI group bought 3.2 million MetroCoal shares in November 2011, while its Chinese parent company acquired 28.8 million shares to become one of MetroCoal’s major shareholders.