JOGMEC Launches the First Joint Venture Agreement
for Coking Coal Exploration in Canada.
JOGMEC (President: Hirobumi Kawano) is pleased to announce that it entered into a new agreement to jointly explore coal in the Palisades Project Area on April 8th, 2015, with Altitude Resources Inc. (Altitude), an Canadian coal company.
Since JOGMEC’s start of its coal Joint Venture (JV) scheme in 2013, JOGMEC has formed three coal JVs in Australia. This is the first coal JV for JOGMEC in Canada, which is formed for JOGMEC to diversify the supply sources of coking coal.
The Palisades Project Area (Palisades) is situated in the North-Central Alberta Foothills, which is highly prospective for coking coal resources, in the west of Alberta.
Coking coal supply to Japan relies on import from Australia which occupies about a half of total import amount, and from Indonesia by about 30%. It is anticipated that this project would contribute to diversify the supply sources of coking coal, which leads to reinforce Japan’s resources security.
Palisades is located about 350km northwest of Calgary and consists of 7 Coal Leases (about 117km2) in which some coal seams have been already identified. Palisades is located in the highly prospective zone of coking coal within which Teck coal Ltd is operating Cheviot coal mine and Maxim Power Corporation has been conducting coal development as Summit coal project.
JOGMEC has the right to earn 31.875% participating joint venture interest in the project by completing its payment of C$3.0 Million as an exploration expenditure for the first two years. JOGMEC can elect to earn a further 19.125% (51% in total) participating joint venture interest by adding C$1.8 Million over the subsequent 12 months. JOGMEC can transfer its position in the joint venture agreement including its acquired interest to a Japanese company any time during the term of the agreement.
Altitude and other previous tenement holders have completed about 60 drillholes to date, by which 3 coal seams have been identified in the Palisades. The part of the Palisades has potential for coking coal minable by opencut.
It is a coal exploration and development company listed on the TSX-V (Toronto Stock Exchange) in 2013 and headquartered in Calgary, Canada. It owns 4 coking coal exploration projects in Alberta.
Figure 1 Location of Palisades Project
The inquiry about this page.
Coal Exploration Division, Development Exploration DepartmentArai and Muramoto
Public Relations Division, General Coordination DepartmentIto