A commercial coal mine at the Tatu project in New Zealand moved step further to fruition, as Strategic Minerals (LON:SML) entered contracts to produce a bulk sample from the site at North Island.
Once the sample, expected to cost around NZ$280,000 has been delivered, it will be tested by consultants and potential clients to ensure its suitability for their processes, the AIM firm said.
Strategic's managing director John Peters told investors that the bulk sample was an "important step in the delivery of an economically commercial coal mine at Tatu" and that the firm was looking forward to delivering samples to potential customers and finalising feasibility studies as soon as possible.
"I believe we are well positioned to progress the Tatu project and are in discussions with potential contractors, looking to undertake the construction and operation of the mine, to potentially finance the development of the project.
"The signing of the non-binding MOU with CCTEG reflects this progress"
Strategic wants to secure funding for building the mine through industry contacts and consultants, which may include joint ventures or debt and has now signed a non-binding MOU with China Coal Technology Engineering Group (CCTEG) to provide pricing and funding options associated with both the mine equipment and operations.
The firm wants construction to begin in the first quarter of 2016, subject to positive market feedback and funding being secured.