Xanadu Mines has secured a mining licence for the Khar Tarvaga Coal Project in the Tov Province, Eastern Mongolia.

Licence MV16871, awarded by the Mineral Authority of Mongolia, is for an initial period of 30 years with an option for two 20-year extensions.

The company has a 100% stake in the coal project, which covers a total area of 83.50km2.

Xanadu has discovered sub-bituminous coal resource in excess of 327Mt, which is suitable for power generation.

The resource is also suited for gasification as part of a coal-to-liquids or synthetic natural gas production facility.