Cardero Resource Corp has a definitive agreement to gain control of a metallurgical coal deposit in northeast British Columbia through the friendly takeover of Coalhunter Mining Corp.

Cardero said it will exchange 0.8 of a common share for each common share of Coalhunter, a private company with a 75% joint venture interest in the Carbon Creek coal deposit. The deposit is estimated to contain 120 million tonnes of coal.

The number of shares to be exchanged wasn't disclosed in the announcement but Cardero said it would have about 82 million shares outstanding after the transaction.

According to figures from the Toronto Stock Exchange that would be up 23 million shares from about 59 million prior to the stock swap making Cardero offer worth about USD 33.1 million when it was announced.

Mr Michael Hunter president of Coalhunter said "Our acquisition by Cardero with its market exposure, liquidity, treasury and technical expertise, provides an excellent platform for Coalhunter to not only rapidly advance the Carbon Creek deposit but also to acquire additional coal assets."

He said that "With the surging price of coal due to strong global demand and constrained supply, this is an optimal time to be developing coal assets."