The deal may result in Anglo Coal acquiring a minority interest in Hillsborough and the possible formation of a joint venture to explore and develop nine of the latter’s 11 Northeast British Columbia metallurgical and PCI coal properties, including the Five Cabin property.
A definitive agreement is yet to be signed, and if signed, will be subject to a number of conditions including due diligence by Anglo Coal, approvals by the boards of Anglo American and Hillsborough, and the approval of the Toronto Stock Exchange.
"We are very pleased to have been able to align ourselves with Anglo Coal on the potential development of our Northeast metallurgical coal properties,” David Slater, president and chief executive officer of Hillsborough Resources said.
“While we were quite prepared to go it alone, the presence of a highly professional organisation like Anglo adds exceptional depth to our ability to market the product, and Anglo's expertise will be invaluable in facilitating the development of a mining project of the scale we envisage for Five Cabin."
Hillsborough Resources operates the Quinsam underground thermal coal mine in Campbell River, British Columbia and the Crossville underground coal mine in Tennessee.
