Midwinter Resources is eyeing the acquisition of a high quality metallurgical coal project close to the company’s existing iron exploration assets.

The company has entered into an agreement to acquire 100% of Teeman, a company incorporated in Swaziland, southern Africa. This is contingent on a number of conditions, including due diligence and shareholder approval.

Teeman’s main asset is a prospecting right application over 16 square kilometres in Swaziland, which includes the Mpaka Colliery, with potential for an underground resource.

This acquisition would allow Midwinter to diversify its activities while maintaining a focus on developing raw material inputs into the iron and steel industry.

The Mpaka Colliery, operated by Gencor until 1992, produced coal that was used as a reductant in the production of ferrochrome and ferromanganese in Mpumalanga, South Africa, as well as an export thermal coal product.

A dump at the site could contain significant quantities of recoverable coal, which may provide an early production target for Midwinter.

Infrastructure is well developed in the area, with road and rail providing access to Maputo in Mozambique and Richards Bay in South Africa.

Midwinter is focused on the Northern Lights iron ore project in South Africa, with more than 28 kilometres of broad magnetic signatures generated by aerial magnetic survey.

(Sourced from www.proactiveinvestors.com.au)