Mongolian focused coal explorer Hunnu Coal Ltd (ASX:HUN) has secured Rio Tinto Ltd’s (ASX:RIO) controlling stake in the Altai Nuurs coking coal joint venture project in Mongolia for $40 million.
Hunnu will acquire Rio’s 70 per cent interest for $23 million cash upon signing and an additional $17 million in deferred payments.
Hunnu says this is a major acquisition for the company and that it intends to continue its exploration and acquisition efforts with the support of its strategic partner Banpu PCL.
This year Hunnu is planning to move from exploration to mine development and production.
Yesterday shares in Hunnu Coal ended the day 1.71 per cent higher at $1.49.
