The new agreement follows the termination of a previous agreement with two Mongolian nationals which was announced on July 22. That sale, for consideration of US$2.21 million, was subject to a number of conditions including the payment by the Mongolian nationals of a deposit.
However, Modun did not receive the deposit and terminated the agreement.
ASX-listed Tian Poh has agreed to acquire the subsidiary in consideration for US$100,000 and to acquire Modun’s inter-company debt in consideration of US$2.11 million. The new agreement is not subject to conditions and completion is expected to occur on August 26.
Nuurst has a JORC 2004 reportable coal resource of 478.3 million tonnes with 326.1 million tonnes in the measured category, 103.8 million tonnes in the indicated category and 48.4 million tonnes in the inferred category. This estimate was compiled in November 2012 by CSA Global.
The 2497 hectare exploration licence is 120km southeast of Ulaanbaatar in an area with a number of operating coal mines and is 6km from existing rail infrastructure which allows direct access to the Trans-Mongolian Railway.
Tian Poh is a Singapore based company with highly prospective coal and copper assets in Mongolia. Founded by Poh Kay Ping, a director of the Poh Group, Tian Poh has 10 concessions within close proximity to the Chinese border and which cover 125,000 hectares.
The company intends to immediately commence planning development of the Nuurst project. It is also in discussions with a number or prospective investors to participate in a private placement to assist with funding.
Tian Poh is also currently completing due diligence for the acquisition of the Zuun Mod Molybdenum-Copper Project in southern Mongolia from Erdene Resource Development Corp.