Hunnu plans to offer 100 million shares at 20c each.

Through joint ventures Hunnu already has interests and agreements in coking coal basins in southern and eastern Mongolia with access to infrastructure and Chinese coal markets.

Hunnu has acquired a 60% interest in the coal rights on the Tenuun-2 and Khuree-2 projects in the South Gobi Province and has committed to staged payments and expenditure to maintain its rights.

The projects are 220km from the Chinese border and a coal loading facility with mine permitting has already started.

So far 18 drillholes and five trenches have been made, intersecting two coal seams with an average thickness of 7-10m. A 20,000m drilling program is planned after the company’s initial public offering.

In the Gobi Altai Province, Hunnu has the right to earn a 70% interest in coal rights on the Ar Zuul Gol and Zuun Gol projects through staged payments and expenditure.

The projects are 300km from a Chinese coal receiving point and are 60km west of advanced Rio Tinto coal exploration.

At the Tsagaan Delger project, Hunnu Coal has a right to earn an 85% interest in the tenement, located 25km from railway that connects Russia and China.

The company has a right to earn an 85% interest in the Delgereh project, which is 50km from Chinese border.

It also has a right to earn an 85% interest in the Munh Haan project. Hunnu already has a 60% interest in the nearby Nariin and Khavtsal projects, located 200km from the Chinese border. Initial pit works revealed four areas with surface coal occurrences.

Hunnu is led by executive chairman Matthew Wood, who has 18 years resource sector experience and is already a director of several resource companies.

Managing director George Lkhagvadorj Tumur is a Mongolian national who has taken a leading role in introducing western contract mining and mineral processing technologies to Mongolia.