This is an amazing deal. it represents an area of only 25,000...

This is an amazing deal. it represents an area of only 25,000 hectares on a total lease area of over 204,000 hectares. unbelievable deal for share holders.

• Tata to pay AUD100 million to acquire 35% of Benga and Tete licences


• Project Interest comprises approximately 25,000 hectares

Riversdale Mining Limited (ASX: RIV and "Riversdale") has today signed a Memorandum of Understanding ("MoU") with the global steel group Tata Steel Limited ("Tata"). Under the MoU, Tata will acquire a 35% interest in key coal exploration tenements held by Riversdale in Mozambique for which a special purpose joint venture vehicle will be established to develop the coal project.

Consideration for the acquisition of the 35% Project Interest is AUD100 million for which Tata secures a key position in the joint venture, as well as a 40% share of the coking coal off-take and the option to participate on commercial terms above this level.

Tata will also be strategically positioned to participate with Riversdale in any future opportunities on the surrounding tenements. The Project Interest comprises two licences (the Benga and Tete licences) and covers an area of 24,960 hectares.

Mr. B Muthuraman, Managing Director, Tata Steel said, "The Memorandum of Understanding with Riversdale gives Tata Steel an opportunity to jointly explore part of a large coal basin which could prove to be a potential source to meet part of the raw material requirement of the enlarged Tata Steel entity".

Mr. Michael O’Keeffe, The CEO and Chairman of Riversdale said, "The Memorandum of Understanding with Tata Steel is a decisive corporate event for Riversdale and is a definitive recognition of the Moatize Coal Basin as a significant new source of supply of hard coking coal products for the global steel industry. The MOU culminates a lengthy and thorough search for a strong strategic investor. Tata Steel is one of the most dynamic steel companies in the world. Throughout their long history, they have demonstrated consistent ability to thrive throughout many market cycles. They are an ideal strategic partner for Riversdale, and offer our shareholders the most efficient way to realize value from the development of Riversdale’s world class projects