London Mining has announced the purchase of a 20 percent stake in Cayman Islands-located International Coal Company Ltd (ICC) for a total consideration of $5 million.
ICC, which has operations in Colombia, South America, aims to become a fully integrated developer of coal properties for the international steel and energy markets. In line with this strategy, the company has been acquiring concession interests in metallurgical coal districts in Colombia with good logistics and access to transportation infrastructure for the seaborne market.
London Mining has stated that ICC has assembled an attractive portfolio of metallurgical coal exploration and development properties as well as a coke oven battery project which is currently under development.
In order to further expand its coal assets and execute its strategy of integration, ICC has entered into a binding Letter of Intent (LoI) to acquire an initial 75 percent interest in a leading mining services operator in Colombia. The completion of the transaction is conditional on the final due diligence, documentation and finance.
In the event of a successful completion, ICC will add two properties with metallurgical and high quality steam coal with identified inferred resources of approximately 118 million mt and a geological potential in excess of 400 million mt, and with ocean and river port concessions.
London Mining said that Colombia is gaining further significance in the international resource markets due to the high quality of coal available, its geographical location and proximity to major coal markets.