JOHANNESBURG (miningweekly.com) – ASX-listed coal developer Atrum Coal has settled all litigation proceedings with former founders Russell Moran and Gino D’Anna, owners of new venture BC Anthracite.
Atrum announced on Wednesday that the parties had reached a no-liability settlement, which would be dismissed by consent. Not only did Atrum secure an additional five tenements to add to the Groundhog East area, in British Columbia, Canada, but BC Anthracite also granted royalty over 31 of its tenements in the region.
The company elaborated that, as part of the settlements, it was granted five tenements from BC Anthracite, through its wholly owned subsidiary, Atrum Coal Groundhog, which would be amalgamated with the company’s Groundhog East project.
BC Anthracite had also offered a 1.5% ex-mine gate royalty over 25 of its tenements to Atrum, and a 0.5% ex-mine gate royalty over six of its tenements.
Moreover, the companies had agreed to develop infrastructure solutions for the Groundhog region, with the aim of sharing the costs of infrastructure development.
“The companies have agreed to work together to explore infrastructure options in the region, with the view to develop access to tidewater for the BC Anthracite and Atrum properties in Groundhog,” said Atrum executive chairperson Rob Bell.
“It’s good to place the issue behind us so that Atrum can continue with developing our Phase 1 mine. Interest in the company’s anthracite is strong and we continue to field requests for supply as soon as possible.”
Moran, who is executive chairperson of BC Anthracite, added that the Groundhog coalfield was a “once-in-a-lifetime opportunity”.
“We are pleased to have reached an agreement with Atrum on how best to work together to maximise value and opportunity for all stakeholders,” he said.