Mongolian focused coal explorer Hunnu Coal Ltd
(ASX:HUN) has forged a partnership with Banpu Minerals (Singapore) Pte Ltd, a wholly-owned subsidiary of Thailand's Banpu Public Company Ltd.
Under the terms of the partnership Banpu will acquire 30 million shares in Hunnu through a private placement at $1.50 per share for $45 million.
The transaction will give Banpu a 12.4 per cent stake in Hunnu, making it the largest shareholder in the company.
Banpu says the acquisition will enable it to take advantage of the Mongolian coal sector and developing infrastructure, in addition to its close proximity to export markets such as China.
Hunnu has a strong position in thermal and coking coal deposits in South Gobi in Mongolia and is currently exploring 10 coal development projects.
Shares in Hunnu Coal last traded at $1.24, before entering a trading halt, pending an announcement due today regarding a corporate transaction.
