Photo by: Bloomberg
PERTH (miningweekly.com) – Coal hopeful Atrum Coal on Thursday announced that it would spin out its exploration assets into a separate company named Kuro Coal, which it would list on the ASX.
The exploration assets include the Naskeena anthracite project, the Peace River coal project, and the Bowron River coal project, all located in Canada.
Under the spin-out, current Atrum shareholders would receive one free Kuro Coal share for every four existing Atrum shares held, with the miner planning an initial public offering (IPO) of the spun-off vehicle on the ASX.
Kuro was expected to raise between A$6-million and A$8-million during its IPO, with shares being priced at 20c each.
“The spin-out of Kuro Coal allows us to capture a great deal of potential value and provides an opportunity for Atrum shareholders to freely participate in the development of what we hope will be another world-class coal explorer,” said Atrum chairperson James Chrisholm.
The demerger details were currently being finalised, and Kuro was expected to start trading on the ASX, under the code KCO, by the second quarter of this year.
Atrum executive directors Russell Moran and Gino D’Anna have been appointed as directors of Kuro, while Brad van den Bussche has been appointed as VP of exploration, mirroring his role at Atrum.