MetroCoal snags $30m coal deal with China Coal

Investors in coal energy company MetroCoal (ASX: MTE) had reason to cheer when the share price jumped with news of a joint venture agreement with China Coal Import & Export Company, a wholly owned subsidiary of China National Coal Group Corp.
Newly listed MetroCoal listed on the Australian Securities Exchange in December 2009 following a $10 million capital raising.
China Coal Import & Export Company (CCIEC) has acquired a 51% interest in MetroCoal’s EPC 1165 Columboola in the Surat Basin, Queensland for an expenditure commitment of AUD$30 million on EPC 1165.
MetroCoal said the funds will be used for exploring and evaluating the potential for future commercialisation options within the Columboola permit ground. 
The Columboola JVA requires a minimum expenditure of $4 million within the first two years of the agreement.
MetroCoal CEO Mike O’Brien said “China Coal is a substantial company producing in excess of 100 million tonnes of coal a year."
It is understood CCIEC will bring valuable technical skill and expertise into the joint venture, particularly in underground coal mining.
MetroCoal has an exploration target of between 2.5 and 3.5 billion tonnes of coal.
The transaction has been approved by the Foreign Investment Review Board.

http://www.proactiveinvestors.com.au/companies/news/6294/metrocoal-snags-30m-coal-deal-with-china-coal-6294.html