AUSTRALIAN PACIFIC COAL LIMITED (ASX:AQC)
is pleased to announce that on 21 February it signed a non-binding Heads of Agreement with Linchpin Capital Group Limited (Linchpin) to jointly develop the South Clermont coal exploration tenement located in the Bowen basin coal fields.
The intention, once the agreement is finalised is to initiate an exploration program to complete proving the resource and then to bring the
deposit into production. Initial indications are that this has the potential to be an open cut operation.
On completion AQC will transfer its South Clermont tenement into a newly formed entity which will raise the funding for and will conduct the exploration and development of the project. AQC will initially hold 50% of the equity in the new entity. AQC will be paid a preagreed management fee for services that it provides to the operation.