The company said it had progressed negotiations on the sale and purchase agreement of the licences from an international coal developer in the country.

There are four licences in the South Gobi province and four at the adjoining Ovorhangay province in southern Mongolia, covering an area of about 625 square kilometres.

To date, C @ has undertook a drilling program on the tenements, where it intersected three coal seams on the Ovorhangay licences.

Initial raw coal quality tests have identified high quality coking properties and discussions are underway to secure a drilling rig for phase two of the exploration program.

C @ said it would commence an aggressive exploration program on the tenements once the licences were acquired with the intention to obtain a JORC-compliant resource.

C @ has appointed Azure Capital as corporate advisor to help with the acquisition of the coal licenses.

The settlement of the licences is expected to be completed by the end of November, with hopes to start mining operations in Mongolia by 2014.