hang on kids, do we have real coal????, page-29

Cougar hits the news


In around a year Cougar Energy managing director Rob Neill has taken what was a little known non-core asset - the Mackenzie PCI Coal Project - and turned it into a value adding company project that has a myriad of options.

Although it is still early days at Mackenzie with the Inferred Resources the first step in understanding the asset, the defining factor is the strategic location - which lends itself to options.

As Cougar further proves up the resource, the company could consider:

- A direct sale of the asset to neighbours Jellinbah and Yarrabee, who are long term exporters of PCI coal.
- A sale to other companies either in the region, or looking to gain access to a potential quality product in a safe and well-serviced jurisdiction.
- A farm-in of some type where Cougar could maintain part of the asset through free-carry.
- Development of the mine itself and look to then leverage off existing infrastructure as a way to be cost competitive.
- Royalty agreements.

With Cougar's neighbours Jellinbah and Yarrabee upgrading their facilities, Cougar has the potential to have off-take partners 'just over the fence'.