Hunnu Coal has acquired, through its subsidiary Hunnu Investments Pte Ltd, Rio Tinto Minerals Development Limited’s subsidiary that has a controlling interest in the Altai Nuurs Coking Coal JV Project through
1. 70% of RioAD LLC, holder of 2 licenses in the Gobi Altai.
2. 70% of Rio Gobi LLC, holder of 8 licenses in the Gobi Altai.

Consideration to Rio Tinto
$23m cash payment on signing and a further $17m in deferred payments.

The Altai Nuurs Project comprises six exploration licenses totaling 46,212 hectare and four mining licenses totaling 202 hectare with an Exploration Target of between 250 million tonnes and 500 million tonnes.

Mr Matthew Wood executive chairman said “Preliminary test work indicate the coking coal parameters compare favorably with similar coking coal projects elsewhere in the world.”

The Altai Nuurs Project is located in the south western Gobi Altai Province of Mongolia, approximately 250km by road to the Burgastai border crossing point into China and only 550km to the China rail network. Earn-in options were negotiated with two local companies to acquire through exploration and staged payments 70% of the project.