Perth-based Hunnu Coal has continued its stunning run with the announcement of a strategic partnership with Singapore-based Banpu Minerals to develop its Mongolian coal tenements.
Under terms of the partnership, Hunnu will issue Thai-listed Banpu 30 million shares at $1.50 per share to raise $45 million.
Hunnu listed at $0.20 in February 2010.
At 11:00AM (WST) today, Hunnu shares had gained 9.2 per cent to trade at $1.35.
Banpu will become Hunnu's largest shareholder, with a 12.4 per cent stake, and will nominate a representative to Hunnu's board.
Banpu chief executive Chanin Vongkusolkit said the company was looking to be a long-term player in the growth and development of Hunnu, and the Mongolian coal sector.
"A strategic partnership with Hunnu is a lower risk way for Banpu to familiarise itself with the Mongolian coal industry," Mr Vongkusolkit said.
"Establishing a strategic alliance in Mongolia is part of Banpu's strategy to expand its position in key Asia Pacific markets.
"We are strongly supportive of the Hunnu's management team and its current strategy.
"The alliance will allow Banpu and Hunnu to share operational expertise, with Banpu representation on the Board allowing Banpu's expertise to benefit Hunnu at the highest level."
By Dan Wilkie
