Proactive Investors - Run By Investors For Investors

Lucky Strike Resources to acquire 80% of 6 Mongolian coal licenses

Lucky Strike Resources to acquire 80% of 6 Mongolian coal licenses

Lucky Strike Resources (CVE:LKY) reported Wednesday that it has signed definitive agreements with five private Mongolian companies to acquire an 80% stake in six mining exploration licenses and coal properties.

The Choir-Nyalgia properties, which encompass an area of 13,096 hectares, are situated 170 kilometres from the Trans-Mongolian Railway.

Under the agreement's terms, Lucky Strike will pay vendors US$5.8 million in cash to acquire the 80% interest in the Choir-Nyalgia properties and commit US$2.5 million in exploration expenditures.

Lucky Strike said it already paid non-refundable deposits of US$100,000 to certain vendors, and upon the acquisition's acceptance will make additional cash payments of US$400,000.

It is estimated that Mongolia has potential coal resources of 162.3 billion tonnes, and 20.3 billion of coal resources in the Choir-Nyalgia coal basin, which exported 18.2 million tonnes of coal last year, Lucky Strike said.

"Mongolia has vast coal resources with significant potential at an early stage of development in the nation's mining industry," said Lucky Strike’s chairman and chief executive officer, Cathy Fong.

"Lucky Strike's decision to acquire coal exploration licenses within the Choir-Nyalgia coal basin was based on favourable geological conditions."

Further, as part of developing the properties, it intends to carry-out a drilling program to determine the extent of the mineral resource potential.

Additional geological, engineering and feasibility studies are expected to be required to assess whether the Choir-Nyalgia coal properties have the economic potential to ship product to Ulaanbaatar, and to be a fuel source for a power generating plant.

The acquisitions are subject to TSX approval, as well as legal and technical due diligence.

Lucky Strike's shares rose 30 cents, or 4.29% to $0.73 in Wednesday’s afternoon trading session.

View full PROAC profile View Profile

Proactiveinvestors Timeline

Related Articles

Students in a class
August 27 2018
The company is gaining traction in Asia where people are looking to take language courses to work or study internationally
Live Company
In June 2019 the company signed a five-year deal to create tours themed around properties owned by children’s television network Nickelodeon
January 29 2019
“With the geopolitical landscape remaining in flux, clients are looking for greater certainty from their marketing programmes which our agencies and data businesses are proving able to provide"
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use