Australian coal miner Lemur Resources has completed a strategic review to consider best options to utilize its structure and cash reserves of $18.02m.
The company now plans to develop a thermal coal mine at its 99% owned Imaloto Coal project in the Imaloto Coal Basin in Madagascar with the strategic review comprising of an assessment of further work required at the project.
Following the completion of three exploration programs at the project, the company reported a coal resource of 147.5 million GTIS, where 81% is in the measured and indicated category.
The board of Lemur has decided to utilize its significant cash reserves to undertake acquisitions in coal assets as well as assets of other commodities.
Consequently, the company initiated a formal search and made contact with various Global Investment Banks and Commodity Traders.
Lemur also plans to complete the mining scoping study, which will include a preliminary mine plan and preparation of a detailed financial model, without any additional drilling.
The mining scoping study is expected to be completed before April 2013, which along with the port and infrastructure scoping studies, will determine the project’s financial model.