Mining major Rio Tinto has sold off two coal exploration licences in Queensland to explorer Mozambi Coal.
The coal exploration junior has acquired two licences for an initial cash consideration of $375,000.
Under the agreement additional milestone payments of up to $3 million would be payable to Rio Tinto Exploration upon delineation of a measured resource in excess of 50 million tonnes of coking coal and if export shipments commenced down the track.
One licence, EPC 1768, covers an area of about 30 kilometres squared in the Bowen Basin, west of Mackay in Central Queensland.
In an ASX statement Mozambi Coal said it considers the licence to be early stage.
“Mozambi believes EPC1768 provides multiple exploration targets within well-known coal bearing formations within the Northern Bowen Basin,” the company said.
The second licence EPC2098 is located about 117 kilometres south of Mackay and has been classed by the explorer as a greenfields area.
Mozambi is also negotiating a deal to acquire an additional three exploration licence from other vendors in the state.