Thomson Financial reported that Dwyka Resources Limited has taken an option to buy a 30% initial stake in the Daguma and Bonanza coal deposits on the island of Mindanao.

Dwyka Resources estimates an initial overall project resource in excess of 200 million tonnes of medium calorific value coal, suitable for the export and domestic power markets.

It said that there will be an aggressive drilling program with the aim of increasing the project resource significantly, adding that it has the option of increasing its interest to 100%.