Leigh Creek Energy (ASX:LCK), formerly Marathon Resources, has signed a heads of agreement with Archer Exploration (ASX:AXE) to explore synergies on their respective projects at Leigh Creek, South Australia.
The company is developing its Leigh Creek Energy Project (LCEP), an in situ gasification project at the site of Leigh Creek open cut mine.
Archer is pursuing development options for its magnesite deposit located 20 kilometres from the LCEP.
The two companies will work together to identify possible synergies for their respective projects.
These may include the sale of energy from the LCEP to Archer, the sharing of infrastructure and other associated synergistic benefits.
In August, Leigh Creek signed a heads of agreement with AET Investments Unit Trust to jointly develop a chemical and fertiliser facility to service the local market.
The LCEP will provide the raw materials for the facility while AET will provide the technology and know-how.
It seeks to produce gas from in situ gasification of deep coal resources at the existing Leigh Creek coal mine area.
As at 30th June 2015, Leigh Creek had $1.48 million in cash.
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