Stratum Metals expands thermal coal exploration footprint in Canning Basin

Recently-listed Stratum Metals (ASX: SXT) has acquired two additional prospective thermal coal tenements adjacent to its existing holdings in the Canning Basin in Western Australia.

The acquisition by the company's wholly owned subsidiary Stratum Coal Pty Ltd means that Stratum has now secured rights over a total of 700 square kilometres of coal prospective tenements in the emerging coal province.

Tenement "E04/2160" is to the north and tenement "E04/2161" is to the south of Stratum’s existing holdings, and are about 20 kilometres from Rey Resources' (ASX: REY) Duchess Paradise 2.5 million tonne per annum thermal coal project.

Rey has fended off two takeover offers for the company, indicating the demand for coal from Asian interests.

The company's coal interests are held in an 80/20 Joint Venture with State Resources at the Canning Basin Coal Project, which is located about 150 kilometres southwest of Derby, in the Kimberley Region.

Stratum is currently awaiting native title approval and granting of its existing Canning Basin Coal tenement and is working with the Kimberley Local Council to achieve this aim.

The company is planning to spend $250,000 on exploration in fulfilment of its obligations to obtain a 60% interest in this tenement and, subject to positive results, an additional $750,000 on exploration in the second year to obtain an 80% interest.

Stratum Metals listed on the ASX on October 11 after completing a fully subscribed IPO funding for 20 million shares at $0.20, raising $4 million.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22466/stratum-metals-expands-thermal-coal-exploration-footprint-in-canning-basin-22466.html