Astra Resources has signed a memorandum of understanding (MoU) for a joint venture development of a thermal coal exploration license in Nigeria.
Under the MoU, Astra Resources' subsidiary Muyiwa will acquire the majority ownership of African firm Barjalex Nig.
Barjalex Nig owns a coal exploration license covering the Manejo and Odele communities in the Ika District of Ankpa Local Government, in Kogi State.
The exploration license, which covers an area of four square kilometres, is expected to be expanded to 12km2.
According to studies, the coal seam thickness ranges from 1.1m to 3.2m, with the main coal seam covering about 300m.
Astra Resources managing director Silvana De Cianni said the site can be initially developed using surface mining technologies and the coal will be exploited using highly productive longwall methods.