Shares in Strategic Minerals (LON:SML) rose as its plans to develop the Tatu coal mine in New Zealand moved on a step - as the government agreed the change of the licence's ownership.
With regulatory approvals now received, Strategic owns 51% of KCM - the holder of the licence.
It now has until the end of January 2016 to demonstrate financial capacity to complete the mine, before it can exercise its option to acquire the remaining 49%.
Strategic's managing director John Peters said today: "We are currently well developed in our mine plan and are in discussions with suppliers which we believe, in conjunction with our recent capital raising, will provide the vendor of KCM sufficient comfort on Strategic Minerals' financial capacity to complete the project.
"In the interim, the recent fund raising has provided us the ability to continue preliminary works, including a bulk sample to assist in coal analysis and customer evaluation.
"Strategic Minerals is targeting commencement of the mine construction by the year end and targeting completion of the mine in mid-2016.
"We are aiming to achieve some sales during the construction period with greater sales volumes expected after completion of the mine."
A maiden JORC resource estimate has shown 6.72Mt (million tonnes) of measured and indicated thermal coal at the property, of which 75% was in the high certainty, measured category.
Should Strategic not proceed with exercising its option, the vendor of KCM has the right to acquire the 51%in KCM held by the company for NZ$1.
Shares added 6.25% to 0.425p.