ASX-listed Bowen Coking Coal has struck a non-binding term sheet with a subsidiary of Sumitomo Corporation, over the Hillalong coking coal project, in Queensland.
The two companies have agreed to negotiate the terms of a formal and legally binding earn-in agreement, under which Sumitomo could earn an initial 10% interest in the project by spending A$2.5-million on exploration, and the right to earn an additional 10% interest by providing a further A$5-million in funding.