Cockatoo Coal (ASX:COK) has announced it has entered into an exploration agreement with JOGMEC, the state-controlled Japanese commodity-oriented company whereby the latter will invest up to A$3.5M in exploration expenditures on Cockatoo’s Dingo West property in order to earn up to 35% of the property.
This Dingo West property is roughly 50 kilometers from Cockatoo’s Baralaba mining complex and is adjacent to the Dingo project which is a 70/30 joint venture with Whitehaven Coal (ASX:WHC). It’s very interesting to see Cockatoo was able to secure an impressive partner for what could be described as a greenfields exploration project. Some holes have been drilled on the property in the past, confirming the existence of coal seams, but much more work is needed, and Cockatoo will definitely benefit from stepping up its exploration efforts at Dingo West funded by someone else’s money.
Meanwhile, Cockatoo has also sold its 51% stake in the North Surat coal project to a subsidiary of New Hope for A$25M. This will be a very welcome cash input as this will (temporarily) reduce the pressure on the company’s financial situation.
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Disclosure: The author holds no position in Cockatoo Coal. Please see our disclaimer for current positions.
