Brisbane based junior coal and minerals explorer Bowen Energy Ltd said a AUD 4 million loan facility from Bhushan Steel Australia Pty Ltd has been doubled to AUD 8 million.

The boosted loan comes on the back of Bowen announcing it has completed the drilling of 15 bore holes at its Katrina prospect in central-east Queensland’s Bowen Basin, a region known for its hard coking coal and to a lesser extent coal seam gas.

Bowen Energy said “Two possible coal seams of interest, possibly thick enough to be permissive for longwall mining, appear to exist below 370 meters from surface. Drill hole 09KTDH07, which is outside the original drilling plan, intersected a 2.4 meter clean coal intersection from 528 meters, containing a number of plies which indicate potential coking properties.”

An on market takeover offer for now circa AUD 7.5 million capped Bowen Energy, launched by Bhushan at 14 cents per share, expired on 26 August 2009.

Bowen Energy controls around 1400 square kilometers of hard coking coal tenements and uranium prospects.

Bhushan Steel Australia Pty Ltd is a wholly-owned subsidiary of Bhushan Steel Ltd, an India based steel manufacturing giant concentrating on the auto industry.

(Sourced from Proactive Investor)