Under the terms of the MoA, Coalswana will jointly fund the studies for an integrated mine at an estimated cost of $10m.
The integrated studies involve exploration, resource drilling and engineering to complete the final resources classifications, mine planning design and the optimized detailed development program for the Ultra Clean Coal Energy Fuel (UCCEF) production facility.
A long term off-take agreement will be signed by the two firms by 31 May 2014, where Walkabout to retain sole export rights upon meeting off-take requirements.
Walkabout managing director Allan Mulligan said securing on-site Off-Take partner at Takatokwane has marked a major step towards the Takatokwane project, while retaining the rights to export Off-Take.
"While studies still need to confirm the optimal commercial and technical viability of the UCCEF process configuration, the multiple development options for Takatokwane coal significantly reduces risk and enhances project economics," Mulligan added.
