It is reported that Mozambi Coal has caught the eye of investor Richmond Natural Resources which has acquired a 5% shareholding in the company.

The company purchased 5.7 million shares between 15 November 2011 and 10 January 2012 for a total consideration of AUD 969,398.52, providing an average entry price of AUD 0.17 per share.

Mr Shiv Madan Mozambi Coal managing director said the support of Richmond Natural Resources gives increasing credibility to the potential of Mozambi Coal. He said that “The principals of RNR have a strong track record of developing large scale coal assets internationally, including associated infrastructure, and we expect to work alongside them as we progress our operations in Mozambique.”

He added that “RNR’s growing financial interest in the company promotes our view that Mozambique is on track to becoming a significant part of the international coal market, a view that is increasingly supported by key players in the industry.”

Richmond Natural Resources is led by Chairman Mr Gary Rogliano a 20 year mining veteran who previously founded and managed INR Energy, a West Virginia-based producer and exporter of metallurgical and thermal coal that was sold in 2010 to Cliffs Natural Resources for USD 757 million.

Mr Rogliano said "This investment in Mozambi Coal demonstrates our high expectations in Mozambique as an evolving coal producer and specifically in Mozambi Coal as a market leader and significant player in that vital geographic market.”

Mozambi is ramping up coal exploration in Mozambique with 2012 expected to be a busy year.

Exploration will cover the company Songo, Tete West and Muturara projects in the Zambeze Coal Basin a region frequented by mining giants Rio Tinto and Vale.

(Sourced from www.proactiveinvestors.com.au)