Modun Resources (ASX: MOU) has raised funds for the ongoing Feasibility Study on the Nuurst thermal coal project in Mongolia, as discussions with the Government for an off-take agreement for Nuurst coal briquettes continues to progress.
Modun attracted sophisticated investors in the placement at the market price of $0.007 to raise $375,000.
Recently the company achieved another significant milestone on the road to production at Nuurst, following the approval of its application for a mining licence.
The project is strategically located and is just 6 kilometres from existing railway infrastructure, with Modun the only international company recently selected as a preferred supplier of coal to the Mongolian Government under their "Clean Air Initiative."
The initiative is to reduce air pollution in Ulaanbaatar, which has been ranked as the second most polluted city in the world according to the World Health Organisation, following Ahwaz in Iran.
Modun is the only preferred supplier who owns their coal reserve, which importantly guarantees coal supply for making the briquettes and greater control, while also placing the company in a position to have compelling economics by reducing the coal acquisition costs over its competitors.
The Nuurst Coal Project has a 478 million Resource of sub-bituminous coal.
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