The amended terms stipulate Mozambi pay Xiluva Minerals Resources $US100,000 on completion of the successful transfer of the Songo licence in to the joint venture company.
A further $650,000 will be paid upon definition of a 100 million tonne JORC-compliant measured resource at the site.
The previous arrangement would have had Mozambi paying over $1.5M before any JORC-compliant resources were even established.
“The revised terms represent a significant improvement for Mozambi and the Songo project by linking further payments to exploration success,” Mozambi managing director Shiv Madan said.
“This will ensure that Mozambi can target further expenditure towards the exploration of the licence.”
Songo lies only 40km south of a Jindal Steel and Power tenement where a 700mt coal resource has been identified.
Exploration at Songo has focused on the southeast section of the 224sq.km license and has included three drill holes for a total of 1310m of scout drilling with no coal samples collected yet.
Mozambi said realizing targets at Songo will depend on the thickness of the main lower measures which have been estimated at 40-50m thick.
Mozambi owns 609sq.km of coal exploration projects targeting 5-6 billion tonnes of thermal and coking coal in the Zambeze coal basin of Mozambique’s Tete province.
