Australian coal explorer Pacific Coal has stated that it has struck a deal to bring Australian mining giant Rio Tinto in as a partner in its Mt. Hillalong project in central Queensland state, Australia, according to international media sources
Pacific said Rio's exploration unit will make an initial payment of A$2.3 million (US$2.4 million) and will fund and manage exploration worth at least A$700,000 (US$727,720) on exploration tenement EPC 1824, with Rio holding an option to buy a 75 percent stake in the tenement within the first 24 months of exploration.
Pacific Coal said it plans to use the funds from the deal with Rio Tinto to continue its exploration program. It also said that the Mt. Hillalong project contains both metallurgical and thermal coal.