BHR.L Share News (BHR)

Coal miner Beacon Hill Resources has provisionally agreed to pay $42m for a coal asset in the Moatize coal basin in Mozambique that will significantly boost the group's coal resources.Beacon Hill has signed a memorandum of understanding to acquire a 100% interest in coal licence area 1165L, which is located close to the group's existing Minas Moatize coking coal mine.The current owners of the licence area estimate that it has a gross coal resource of more than 450m tonnes, with evidence of a low ash export product with the potential for coking coal."Licence 1165L represents a rare opportunity in a prime locality in the globally significant coking coal district of the Moatize basin," said Beacon's executive chairman, Justin Lewis. "The acquisition of Licence 1165L has the capability to increase Beacon Hill's coal resources in the region by more than five fold as well as the potential to add further near term production of coking coal," he added.---jh