R/€ = 15.71 Change: 0.00
R/$ = 13.43 Change: -0.02
Au 1231.96 $/oz Change: 8.71
Pt 829.00 $/oz Change: 16.94
 
 
R/€ = 15.71 Change: 0.00
R/$ = 13.43 Change: -0.02
Au 1231.96 $/oz Change: 8.71
Pt 829.00 $/oz Change: 16.94
 
 
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Atrum incorporates Elan project directly into portfolio, reverses decision to list

6th December 2017 BY: Dylan Slater
Creamer Media Staff Writer and Photographer

JOHANNESBURG (miningweekly.com) – ASX-listed coal miner Atrum Coal has reversed a decision to list its Canada-based Elan Coal properties on a stock exchange and, instead, will integrate the mining project directly into its portfolio.

Prior to this development, Atrum Coal intended to acquire 100% of the Elan hard coking coal project and subsequently list it on the TSX, ASX or an alternative international exchange.

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However, Atrum Coal and the vendors of the Elan coking coal properties have agreed on an amendment to the sales and purchase agreement (SPA) to enable Atrum Coal to acquire the properties directly, rather than through Atrum Coal’s wholly-owned subsidiary Kuro Coal.

Under the amendment, Atrum Coal will assume all the rights and obligations for Kuro Coal in the original SPA, including the payments of C$3.65-million in Atrum Coal shares at a price of A$0.19 and C$3-million cash.

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The transaction is expected to be completed by the end of March, 2018, unless all parties agree to an extension.

Atrum Coal is currently in discussions with potential funding partners to enable the C$3-million payment to be made. In addition, Atrum plans to also raise up to A$5-million to pay the Elan Coal vendors, as well as to pay for the next phase of exploration at the Elan Coal project. Atrum Coal plans to raise this capital through either a capital raise, a joint venture arrangement or a combination of both.

The Elan properties comprise six areas that are known to hold shallow emplacements of high-quality hard coking coal.

Atrum Coal MD Max Wang said on Wednesday the amendment would enable the company to eliminate significant costs and the management complexity of listing Kuro Coal on a stock exchange, thereby producing a value increase for Atrum Coal shareholders.

“We now have major premium metallurgical coal projects in two provinces in Canada: the Groundhog/Panorama anthracite projects in British Columbia and the Elan coal project in Alberta. Atrum is well positioned to benefit from the strong metallurgical coal market.” 

EDITED BY: Mariaan Webb Creamer Media Senior Researcher and Deputy Editor Online
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