Mozambi Coal attracts U.S. based bulk mining company as substantial shareholder

Mozambi Coal (ASX: MOZ) has caught the eye of investor Richmond Natural Resources which has acquired a 5% shareholding in the company.

Richmond Natural Resources is a U.S.-based company investing in mining and mining related properties worldwide.

The company purchased 5.7 million shares between 15 November 2011 and 10 January 2012 for a total consideration of A$969,398.52, providing an average entry price of $0.17 per share.

Mozambi Coal managing director Shiv Madan said the support of Richmond Natural Resources gives increasing credibility to the potential of Mozambi Coal.

“The principals of RNR have a strong track record of developing large scale coal assets internationally, including associated infrastructure, and we expect to work alongside them as we progress our operations in Mozambique,” he said.

“RNR’s growing financial interest in the company promotes our view that Mozambique is on track to becoming a significant part of the international coal market, a view that is increasingly supported by key players in the industry.”

Richmond Natural Resources is led by chairman Gary Rogliano, a 20 year mining veteran who previously founded and managed INR Energy, a West Virginia-based producer and exporter of metallurgical and thermal coal that was sold in 2010 to Cliffs Natural Resources for US$757 million.

Rogliano said, "This investment in Mozambi Coal demonstrates our high expectations in Mozambique as an evolving coal producer and specifically in Mozambi Coal as a market leader and significant player in that vital geographic market.”

Mozambi is ramping up coal exploration in Mozambique with 2012 expected to be a busy year.

Exploration will cover the company’s Songo, Tete West and Muturara projects in the Zambeze Coal Basin, a region frequented by mining giants Rio Tinto (ASX: RIO) and Vale (NYSE: VALE).

Among the tasks to be completed are a revised model and the identification of additional targets for drilling for the Songo Project, the interpretation of assays from the Tete West drilling program and the start of first pass drilling at the Muturara Project.

Mozambi Coal has a significant exploration position within the country, with three projects covering more than 600 square kilometres and a combined target mineralisation of 4.96-6.19 billion tonnes of coking and thermal coal.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24266/mozambi-coal-attracts-us-based-bulk-mining-company-as-substantial-shareholder--24266.html