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ASX Announcement
3 November 2014
Equus Mining Earns 51% of Andean Coal Pty Ltd
On the 23 May 2014 Equus Mining Ltd (ASX: EQE) announced that it had secured the rights to acquire 100% of Andean Coal
Pty Ltd (Andean), a company holding a strategic package of exploration licenses located in Chile’s largest coal field, the
Magallanes Basin. Under the terms of the Sales Purchase agreement EQE was to earn 51% in Andean through the
expenditure of A$0.2 million. This term has been met and Andean has agreed to issue shares giving EQE a 51% interest in
Andean. EQE also has the option to purchase the remaining 49% of Andean for the consideration of A$0.2 million in shares
at a fixed price of $0.0125 per share.
At the time of the agreement's execution Andean held exploration licenses covering an area of 170km in three strategic
project locations within the Magallanes Basin, recognized as the largest known coal occurrence in Chile. These licenses are
centered over the main coal bearing unit, the Loreto Formation, which extends over a distance of 200km. Subsequently,
additional exploration licenses applications have been made bringing the total area under control to over 300km making
EQE the largest holder of potentially open pit-table coal resources in Chile. The three project areas have strong potential to
host shallow dipping coal deposits suitable for bulk open cut extraction as indicated by a combination of coal outcrop, float
and intercepts in oil & gas wells in the general project vicinity as well as regional work done by BHP and Chile’s state owned
petroleum company ENAP. Please see recent announcements dated 16 September and 10 October.
Of EQE's three coal projects, the Mina Rica project is considered highly strategic given its location adjacent to the
exhausted Pecket mine. Existing idle infrastructure including a ship loader and mining equipment means low capital costs
and direct ship loading from mine and an anticipated low strip ratio means low operating costs. Please
see September Quarterly Activities Report released 30 October for more detail. Currently there is just one operating opencut coal mine in Chile. The potential to replace thermal coal imports and forecasted strong demand growth of thermal coal
by domestic power producers provides an excellent opportunity for new coal project developments in Chile.
Yours sincerely
Edward Leschke
Managing Director
For further information please contact:
Ted Leschke – Managing Director
Ph: +61 2 9300 3366
Email: [email protected]
Equus Mining Limited ABN 44 065 212 679
Level 2, 66 Hunter Street
Sydney NSW 2000
T +61 2 9300 3366
F +61 2 9221 6333
E [email protected]