The Australia-based company announced on Monday that it had completed a placement to sophisticated investors, raising $A375,000 at a placement price of 7c.

Modun said the money raised would be used to fund its 100%-owned project’s ongoing feasibility study.

Another significant milestone on the road to production at Nuurst was achieved recently, with the company receiving approval for a mining license.

Modun is the only international company that has been preselected by the Mongolian government as a preferred supplier for a clean air initiative and said discussions regarding an offtake agreement were continuing.

The Ministry of Environment and Green Development and the Ulaanbaatar City Mayor’s Office are to negotiate a product sale and purchase agreement with Modun for the supply of Modun’s Nuurst coal briquettes.

Modun is using a binderless coal briquetting process.

The raw coal is crushed and hot gas is used to dry the coal to extract moisture.

The dry coal is then compressed under extreme pressure to bind it together into briquettes.

The Nuurst briquettes have been independently tested in Australia and Mongolia and have resulted in a substantial energy increase and emissions decrease.

The emissions produced fall within the Clean Air Guidelines needed by the Mongolian government.

Nuurst has a 478 million ton JORC resource across a 2497 hectare mining license area.