(EnergyAsia, July 2 2012, Monday) — Australia’s International Coal (ICX) said it has concluded a farm-in and joint venture agreement with Queensland Coal Investments Pty Ltd (QCI), a wholly owned subsidiary of Hancock Prospecting Pty Ltd (HPPL), with respect to various tenements in the Maryborough basin.

Located in a well-known and highly prospective hard coking coal region, the tenements are about 45 km to the north of the proposed New Hope Energy Ltd Colton Mine.

Two of the sites have the potential for coking coal discovery and contain two targeted exploration coal-bearing units known as the Burrum coal measures and Maryborough formation.

The principal target is Cretaceous hard coking coals and several exploration targets were determined to hold between 280 million and 370 million tons, said ICX.

The company said it has completed negotiations with the majority of landowners within the project area and lodged compensation agreements with the Queensland state government.

Under the terms of the farm-in agreement, QCI is able to earn up to a 51% interest in the tenements through sole funding exploration expenditure of up to A$3 million. (US$1=A$0.99).

QCI can earn 25% interest through the staged development and expenditure of A$1.5 million and a further 26% through the expenditure of a further A$1.5 million.

In addition to the earn-in payments, the terms of the agreement also require QCI to pay ICX the sum of A$2 million upon attaining the 51% interest in the project

Both QCI and ICX are committed to undertaking exploration activities and plan significant activity within the next 12 months.

“We believe the experience and professionalism of the QCI team can add enormous value to the developments of the tenements. We believe this agreement is the commencement of a constructive and successful relationship between QCI and ICX‰ said David Round, an ICX director.