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The Perth, Australia headquartered company has extended its option to acquire Premier until March 17, 2014.
Premier holds an option to acquire the Emmaus project in the US state of West Virginia. It has about 4,700 acres of mid-volatility hard coking coal territory in the Appalachian Basin.
“The funds will be used by Premier for the next option payment for the acquisition of the Emmaus Property,” Fritzroy said on December 17.
Fitzroy has completed its due diligence programme, and is currently finalising the necessary work required to complete the transaction with Premier.
The deal will propel Fitzroy into the US coking coal sector, where it believes it will have development cost advantages to supply vibrant demand from China supported by growth in the Chinese steel industry.
Australian mineral resources company Fitzroy Resources has paid $250,000 to extend an option period to acquire 100% of USA-based coal exploration and development company Premier Coking Coal.