JOHANNESBURG (miningweekly.com) – ASX-listed Tigers Realm Coal (TIG) has through a heads-of agreement with its joint venture (JV) partners, taken over 100% ownership at the Amaam North coking coal project, in far east Russia.
Through the $25-million, 20-year transaction, JV partner B.S. Chukchi Investments, will convert its 20% interest in the Amaam north project to a 2% royalty of gross sales revenue from coal produced. TIG also acquired Siberian Tigers International’s 3% royalty of gross sales revenue from coal produced by TIG at Amaam North.
“This transaction improves the project’s value and fundability, and simplifies ongoing corporate governance and approval processes,” TIG said in a statement on Friday.
Under certain circumstances, TIG may elect to pay up to 50% of the amount due for any year in kind by issue of TIG shares, and irrespective of the amount paid, yearly payments will cease after 2037.
Meanwhile, the company noted that the shareholders agreement for the Amaam project had been amended to simplify the processes governing the decision to develop and mine coal and streamline corporate reporting and board processes, work programme approval and other management processes.