Introduction
The Bear Coal Deposit consists of 8 coal licenses totaling 2,046 hectares. During 2005, the Company exercised its option to acquire coal leases that cover 100% of the Bear Coal Deposit. Under the terms of the agreement, the Company paid a total of $215,000 and granted a royalty of 2.5% of the coal sales, FOB mine site.
After the joint venture agreement with Itochu Corporation and LG International, Compliance holds a 60% interest in the Bear Coal Project, which is approximately 10 km to the northwest of the Raven Project. The Bear Coal Project contains approximately 8.5 million tonnes of coal resources, these resources are not NI43-101 compliant. |
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