Under the terms of the JEA, JOGMEC will provide up to $3.5m to Cockatoo for exploration expenditure on the Dingo West project over a three year period.
Up to a 35% economic interest will be earned in the Dingo West project by JOGMEC as well as possessing the right to assign that interest to a Japanese nominee company in future to progress the project to development.
The JEA is subject to Australian Foreign Investment Review Board (FIRB) approval.
Located approximately 50km north of Cockatoo’s Baralaba mining complex, the Dingo West Project covers a 76km² area and includes exploration permits for Coal 1535 and 1562 located in the South-Eastern limb of the Bowen Basin.
Through the JEA, JOGMEC will establish rights to an ownership interest in the tightly held South-East Bowen Basin, allowing it to have an enhanced role in the development of new sources of high quality PCI coal, suitable for use in Japanese steel mills.
The JEA provides funding to Cockatoo for all planned exploration activities including drilling, coal quality analysis and feasibility studies within the Dingo West project area over three years.
The initial drilling campaign will target shallow coal targets identified by 2D seismic which is also planned in the fourth Quarter of 2014.
