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The deal will see Straits acquire a 35% interest in RIM, which in turn owns an 80% holding in Madagascar Consolidated Mining.
The $US45m deal includes a $US5 million payment for a resource drill out and the completion of a feasibility study, as well as $40 million in cash and Straits shares.
Following the completion of the resource drill out, which will take up to two years, Straits will have the option of purchasing the remaining 65% of RIM shares.
The amount of the option payment will be based on the resource base defined by the further drilling program.
The Sakoa area is known to contain several seams with individual thicknesses reaching up to 12 metres. Estimates place the area's coal inventory at more than 100 million tonnes.
