re: Ann: Atrum Coal Secures Option To Acquire...
ATU Atrum option to buy 2 Peace River coking coal projects
Sydney - Friday - May 3: (RWE Australian Business News) - Atrum Coal NL (ATU) has secured an option to acquire 100pc of both the Adams Project and White Rabbit Project in the coking coal-rich Peace River region of British Columbia, Canada.
Chairman Mr James Chisholm stated, "Atrum is committed to becoming a strategic metallurgical coal producer. The acquisition of Adams and White Rabbit fits within our strategy to deliver a range of high-value metallurgical coals to the domestic and world markets."
The Adams Project includes one coal licence application covering 8,315 hectares and the White Rabbit Project includes seven coal licence applications covering 12,561 hectares.
The White Rabbit Project has been historically explored and the company has acquired the associated historical exploration data.
The White Rabbit and Adams projects are close to key infrastructure and are immediately contiguous (north and south, respectively) with the Gething Mine, a proposed 3Mtpa coking coal mine in partnership with Shougang Group, China's largest steel producer.
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Key terms of the acquisition:
* option to acquire 100pc interest in eight coal licence applications:
- CLA 417888 (Adams)
- CLA 417889, CLA 417890, CLA 417891, CLA 417893, CLA 417894, CLA 417895, CLA 417896 (White Rabbit);
* $C50,000 cash payment to secure a 60-day option;
* on exercise of option and completion, Atrum is required to:
- pay $C200,000 cash
- issue of 450,000 Atrum shares (subject to 12 months' escrow)
- pay $C150,000 cash for reimbursement of historical rental expenditure;
* Atrum will pay the vendor a fixed royalty of C80c/tonne on coal produced and sold from Adams and White Rabbit; and
* within 24 months and subject to the granting of the respective coal licence applications, Atrum will use best endeavours to conduct an exploration program on each of Adams and White Rabbit that includes a minimum of five drillholes on each project.
The company is currently carrying out due diligence with respect to the acquisitions, prior to the exercise of the option.
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