Atrum Coal Ltd’s wholly-owned subsidiaries, Kuro Coal Ltd (Kuro) and Kuro Coal Canada Inc. (Kuro Coal Canada), have agreed to new terms with the vendors of the Elan metallurgical coal properties.
Atrum Coal and the vendors of the Elan metallurgical coal properties have agreed on an amendment to the Sales and Purchase Agreement (SPA) to allow Atrum Coal to acquire the properties directly rather than through Kuro Coal Ltd, subject to certain conditions precedent first being satisfied.
Kuro will no longer seek to separately list on the ASX, TSX Venture Exchange or an alternative international exchange.
Kuro and Kuro Coal Canada will assign all the rights and obligations in the original SPA to Atrum, and Atrum will assume the payments being CAN$3.65 million in Atrum shares at a price of AUS$0.19 and CAN$3.0 million cash.
The transaction must be completed by 31 March 2018 unless all parties agree to an extension.
Max Wang, Atrum Managing Director, commented: “We are very pleased with this amendment as it will eliminate the significant cost and management complexity of listing Kuro on a stock exchange, and thus is an obvious value increase for the Atrum shareholders.”
“The Elan properties consist of six different areas which are known to hold shallow emplacements of high quality hard coking coal. The first project we will target for development will be Elan South, which is adjacent and contiguous with the Riversdale Resources Grassy Mountain project,’ he added. “We now will have major premium metallurgical coal projects in two provinces in Canada: the Groundhog/Panorama Anthracite Projects in British Columbia and the Elan Hard Coking Coal Project in Alberta. Atrum is well positioned to benefit from the strong forecast metallurgical coal market.”
Read the article online at: https://www.worldcoal.com/coal/06122017/atrum-coal-to-acquire-all-elan-coal-project-properties-directly/