Investors are providing strong support for Universal Coal (ASX: UNV), which listed on the ASX last Friday, with the intra-day trading in the stock hitting $0.32, well up from the $0.26 listing price.
With M&A activity heating up in the coking coal sector space, Universal is well placed with the company commencing drilling at the eastern portion of its Berenice Coking Coal Project in the Limpopo province, South African, with coal sequences intersected in all five holes completed to date.
The Limpopo coalfield has a JORC compliant coking coal resources of 396 million tonnes.
The company said today 35 metre to 40 metre thick consistently developed coal zones have been intersected at depths ranging from 20 metres to 200 metres from the surface, consisting of interbedded bright coal and carbonaceous mudstone.
Additional funds have been allocated to drilling at Berenice, with the view to defininge an inferred resource over the initially targeted area of 6989 hectares.
Universal has an earn-in agreement over two coking coal projects, Berenice and Somerville that together contain 396 million tonnes of JORC compliant inferred resources.
Chairman of Universal Coal Tony Harwood said the company was delighted with the initial intersections of such thick coal sequences. "We will now be focusing on increasing our Coking Coal inferred resource”
Subiaco Capital was corporate adviser to the listing.