July 5, 2012
Mining Projects Group Ltd has completed its acquisition (see SBBiz, February 7, 2012) of 100 per cent of the issued capital of Delcarmen Energy Ltd, which holds two applications for Exploration Permits for Coal north and east of Kingaroy.
The applications, EPC 2527 and EPC 2528, cover a combined area of 1030sq km.
Mining Projects Group says an independent study of the geological prospectiveness of the target area suggests potential for high energy thermal coal as well as semi-soft coking coal, primarily located within the Triassic-age Esk and Gayndah Formations.
Upon granting of these Exploration Permits, which Mining Projects Group anticipates will occur in the coming weeks, it will begin an initial drilling program as soon as possible.
Mining Projects Group will engage an independent geologist to develop a conceptual exploration target and design this initial drill program.
It has begun discussions with local contractors to complete this program and commenced negotiations for access with local landholders and native title representatives.
Under the agreement for the acquisition of Delcarmen, the balance of the consideration payable to the vendors of Delcarmen is contingent on the granting of EPC 2527 and EPC 2528.
The consideration includes the issue of 12.5 million ordinary MPG shares and $200,000 payable in cash on the granting of EPC 2527 as well as the issue of 12.5 million ordinary shares and $200,000 payable in cash on the granting of EPC 2528.
Mining Projects Group says the Delacarmen acquisition provides it with a footprint within a coal basin which has an existing power station and historical rail infrastructure.
