PERTH (miningweekly.com) – ASX-listed developer Atrum Coal has secured an option over both the Adams and White Rabbit coking coal projects, in Canada.
The projects covered some 8 315 ha and 12 561 ha respectively, and were located close to key infrastructure. Both projects were also immediately contiguous with the Gething mine, a proposed three-million-ton-a-year coal operation.
“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,” said Atrum chairperson James Chisholm.
Atrum would have the option to acquire the eight coal licences in exchange for a C$50 000 cash payment. If the option is exercised, Atrum would be required to pay a further C$200 000 in cash, as well as issue 450 000 fully paid shares, and pay a further C$4150 000 cash for the reimbursement of historical rental expenditure.
Atrum would further pay the vendor a fixed royalty of C$0.80/t on coal produced and sold from the two project areas.
Atrum said on Friday that it was carrying out a due diligence on the projects.