Coziron, Grange sign HoA on W. Sumatra coal prospects

Australian mining firm Coziron Resources Ltd. (Coziron) said that it has entered into a conditional heads of agreement (HoA) with another Australian firm Grange Resources Ltd. (Grange) on Inderapura and Tapan coal prospects in West Sumatra.

Grange will carry out due diligence and test work on the area. Initial due diligence and site inspection are expected to be completed in there months, Coziron said in statement to Australian Stock Exchange Monday.

If the result is satisfactory, Grange has agreed to enter into a joint venture to spend $1 million over a period of 18 months to earn a 50 percent interest in the area, Coziron said. The statement added that if Grange fails to expend $1 million within the period, it will not earn any interest in the area.

According to Coziron, the coal prospects cover an area of Lemau formation sediments, which are part of the northwest of the Bengkulu Basin. The Bengkulu Basin coals are the source of major coal mining operation. (denny)