RTX would take the financial and technical risk to examine the coal potential of Mount Hillalong prospect.
If RTX, does not exercise an option to acquire an interest in the project, Area Coal will retain its existing 100% ownership of the entire project.
The Mount Hillalong project targets the Rangal and Fort Cooper coal measures in the Northern Bowen Basin.
The project had limited previous exploration and produced isolated drill hole intercepts of coal within the tenements and geophysical surveys that have defined good drilling targets as the basis for further exploration by the company.
AQC managing director Paul Byrne said we are pleased to enter into such an agreement with an organisation with the skills and experience of Rio Tinto.
The funds released by this proposal will be used by the company to explore its other tenements where drilling is planned to commence in the near future, Byrne added.
