Source: Finance News Network                         Date: 10 March, 2011

Mongolia-focused coal explorer Hunnu Coal Ltd. has forged a partnership with Banpu Minerals (Singapore) Pte Ltd, a wholly-owned subsidiary of Thailand's Banpu Public Company Ltd. Under the terms of the partnership Banpu will acquire 30 million shares in Hunnu through a private placement at USD1.50 per share for USD45 million. The transaction will give Banpu a 12.4 per cent stake in Hunnu, making it the largest shareholder in the company.

Banpu says the acquisition will enable it to take advantage of the Mongolian coal sector and developing infrastructure, in addition to its close proximity to export markets such as China.

Hunnu has a strong position in thermal and coking coal deposits in South Gobi in Mongolia and is currently exploring 10 coal development projects.