Bowen Coking Coal inked a deal to buy Cape Coal’s rights with Rio Tinto (ASX:RIO) Exploration or RXT.
The deal will see RXT or Rio Tinto (ASX:RIO) Exploration receive $1.1 million with $100,000 in cash and $1 million is payable on the granting of a mining lease for the project
The project in Queensland’s Bowen Basin is close to infrastructure with tenements currently being held by Rio Tinto Exploration.
Cape Coal and RXT have been in talks since February 2016 and the transaction remains subject to shareholder approval.
Shares in Rio Tinto (ASX:RIO) are trading 2.83 per cent higher to $81.12.