Under the terms of the agreement, Stanmore Coal will receive A$680,000 funding to undertake the drilling of additional core holes and associated coal quality analysis within the Belview metallurgical coal project area.
Over the first three year period, Taiheiyo can purchase up to a total of 100,000 metric tons of coal from Belview project at a A$2 per ton discount to the Japanese settlement price which prevails at that time.
Stanmore Coal managing director Nick Jorss said that the transaction strengthens the Belview attractiveness as a major Bowen Basin coking coal project.
"We are very pleased to continue the relationship we established during exploration at The Range with Taiheiyo and key Japanese Government Owned Corporation, JOGMEC," Jorss added.
"Securing the exploration support funding for Belview allows us to maximise the exploration undertaken there this year while preserving the Company’s cash reserves."
Drilling associated with the ESA is currnelty underway, aimed to increase the JORC Inferred Resource, and is scheduled to be completed in the first quarter of 2014.
