Pharmaceutical developer Avexa won’t be mixing the two unlikely companions in a lab but rather in its bank balance, with the company announcing it has received a draft permit to start mining for coal at its North Pratt coal project in Alabama.

The draft permit, which is likely to be granted by early June, would allow mining operations to begin shortly after.

The company hoping to generate revenues from the mine by late 2013 to fund the final clinical development of a compound it hopes to use to treat drug-resistant HIV.

The permit is open to public comment and review by the US Environmental Protection Agency.

Avexa announced in November last year that it would invest $US4 million to purchase a 25.5% equity share in Coal Holdings USA, which owns North Pratt.

Avexa chairman Iain Kirkwood said it was pleasing to see the company’s novel strategy for

funding the drug and Avexa’s other projects were proceeding according to plan.

“We are pleased that we are now close to receiving the final approvals which will enable mining activities to begin,” Kirkwood said.

“Revenue is likely to be generated later this calendar year.

“These revenues will be used to fund the final clinical development of apricitabine (ATC), our late stage drug candidate for drug-resistant HIV, prior to seeking marketing approval.”

The remaining clinical development of the drug, needed before market approval, will commence as soon as the Avexa board is confident the company has sufficient cash flow.

The development involves a 300-patient clinical trial.