The two companies are also negotiating for potential potential equity investment by KOMIPO Springsure Creek project as well as long-term coal offtake agreements.
The non-binding agreement is subject to ongoing due diligence by KOMIPO.
In relation to offtake and investment opportunities, Bandanna Energy is also negotiating with other coal customers and investors.
Bandanna Energy managing director Michael Gray said that the non-binding deal confirms the interest between the companies in the development of the Springsure Creek thermal coal project.
"Bandanna Energy’s Springsure Creek Project is uniquely placed amongst Australian greenfield thermal coal projects to deliver stable long term supply of high quality coal due to its resource size, location, contracted infrastructure, advanced approvals process and competitive capital and operating cost structure," Gray added.
Until binding investment arrangements are reached, Bandanna Energy will continue to progress all options for project development funding.
