Mining junior Acacia Coal signed a deal with Coalvent to buy a 74% interest in the Riversdale anthracite project, in South Africa, currently held by a subsidiary of Rio Tinto.

Under the agreement, Coalvent will get the project from Rio Tinto and sells it back to Acacia for AU$2.9 million cash and AU$2.6 million in shares based on certain milestones. Remaining 26% will be held by black economic empowerment partner African Onca.

Acacia declared on October 17 that it would focus on updating a 2010 bankable feasibility study and refresh 2004 Joint Ore Reserve Committee-compliant resource.

It also said it will raise $2 million for the deal and to pay expenses planned under the project.

Acacia Coal is a coal exploration and mining company listed in the Australian stock market ASX.

Louis-Nino Kansoun