On 25 May 2014 Equus Mining Limited announced that it had secured the rights to acquire 100% of Andean Coal Pty Ltd (‘Andean’). Equus is to earn:
- An initial 51% in Andean through the expenditure of A$0.2 million on exploration and administration at Andean’s coal projects.
- The remaining 49% through a 2 year option for the consideration of A$0.2 million in shares.
Equus Mining Limited has strategically positioned itself to take advantage of Chile’s growing demand for electricity via the Andean Coal acquisition deal.
Equus Mining now controls a package of exploration licences centred on the coal bearing Loreto Formation, located in Chile’s largest coalfield, the Magallanes Basin (see map). These licences are situated in three project areas: Rubens, Perez and Mina Rica. All three projects have strong potential to host shallow dipping coal deposits suitable for bulk open cut extraction as indicated by a combination of coal outcrop, float and intercepts in oil and gas wells in the general licence areas as well as regional work done by BHP and Chile’s state owned petroleum company ENAP.
Equus Mining Limited has further increased its strategic ground position with exploration licence applications. This has seen the Equus total area of interest over the coal bearing Loreto formation increase from approximately 166 km2 to 281 km2, an increase of 69% in area (see). EQE intends to continue increasing ground dominance via exploration licence applications and potential joint ventures.
The Magallanes basin is recognised as the largest coal occurrence in Chile and is the centre of a fledgling coal mining industry. Andean’s licences are centred over the main coal bearing unit, the Loreto Formation, which extends over a distance of 200km. Despite Chile importing 75% of its current thermal coal needs, the Magallanes basin has just one operating mine.
Equus Mining Coal Project Locations Map