Strike Resources Limited (SRK) said it has signed a Heads of Agreement to sell 2.4 million tonnes to companies in China and Taiwan, from its Berau Coal Project. Strike announced the completion of the Indonesian mine in June this year, with expectations it could bring in up to US$33 million per year for the Aussie coal miner.
The mine is expected to produce between 1.5 million tonnes and 4 million tones of coal per year.
The two companies that have committed to the purchase of 1.2 million tonnes of coal each are are the China National Building Materials & Equipment Import & Export Corporation (CNBM International) and Formosa Plastics Group in Taiwan.
Over the course of the quarter the company noted the increase in its share price, up from 44c per share to 58c at the end of July. This was primarily driven by the announcement on 27 July that Strike had reached a comprehensive settlement with its partners in Peru to suspend all legal action.
At 1112 AEST, Strike Resource shares were up 6c to 64c.
SRK Price at posting:
62.0¢ Sentiment: Hold Disclosure: Held
