Bowen Secures Farm-In Agreement With Sumitomo Over Hillalong Coking Coal Project

Queensland-based explorer Bowen Coking Coal (ASX: BCB) has secured a farm-in agreement with Sumitomo Corporation over the Hillalong coking coal project, approximately 105km west-southwest of Mackay.

The farm-in, executed between Bowen’s subsidiary Coking Coal One Pty Ltd and Sumitomo-owned SCAP Exploration Pty Ltd, will allow Sumitomo to earn an initial 10% interest by funding $2.5 million in pre-defined exploration expenditure at Hillalong.

It will cover Phase 1 exploration programs for the Hillalong North and Hillalong South priority open pit targets and must be completed within 12 months of commencement of the farm-in in order for Sumitomo to earn its initial stake.

The company will be able to earn an additional 10% by providing a further $5 million in project development funding within 24 months of a Phase 2 work program being approved.