The company stated that the acquisition would be completed after the due diligence study meets its requirements.
Under the agreement, the company has secured a six-month option to undertake due-diligence study at the mine in Upper Silesia, Poland.
In addition, Columbus will be liable for 100% capital expenditure; however, 40% of it will be returned by Greenway following the initial production. No cash or shares will be issued on the exercise of the option agreement.
The mine, which closed in 1994, left the biggest seam (seam 816) intact due to economic constraints.
Greenway is the legal owner of a 13.4 square kilometre exploration concession over the existing mine area. Conditions to convert this exploration concession to an exploitation concession include the drilling of an exploration hole to 945 meters, the hole is presently at 915 meters. The exploitation application is presently being prepared.
Once this option is exercised, the company will complete a bankable feasibility study, which is expected to take over 12 months. It will also carry out re-commissioning and construction work to access seam 816, which is expected to take approximately 27 months.
Columbus is currently evaluating the potential in re-commissioning other existing coal mines in Upper Silesia, Poland.
