ENP Newswire -
Release date- 03092014 -
The acquisition will take place through a joint venture between Kuro and Elan.
Commenting on the joint venture, Atrum Coal Executive Director and Kuro Coal Non-Executive Director Mr
The Elan acquisition includes 27 Alberta Crown Coal Lease applications covering a total area of approximately 23,000 hectares.
Commenting on the joint venture partnership, Elan Executive Director
Elan is located in the foothills and front ranges of the
The Elan project comprises 27 Alberta Crown Coal Lease applications covering an area of approximately 22,951 hectares. In
The majority of the project can be accessed via paved highways as well as a system of limited use roads and access trails.
The development of ground access in and around the project area will allow the Company to undertake exploration with ground based drill rigs with minimal reliance on air support to conduct exploration and development.
Elan lies within the Front Ranges of the
Historical drilling on and near Elan suggests there are 10 to 16 coal seams that range from 3 to 10 m in thickness.
Additional drilling in the area will confirm the economic potential of these coal seams and the Company will prioritise the drilling to enable the completion of a pre-feasibility study at Elan. Coal rank is low to medium volatile bituminous with variable but generally moderate ash content, good washability, and good coking properties.
The Property hosts a JORC compliant Indicated and Inferred Resource (in accordance with 2012 JORC guidelines) of 146.5Mt.
In addition to the current JORC Resources, Elan hosts an Exploration T Exploration T Exploration Target of arget of arget of
The Exploration Target quantity and quality is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the Exploration Target being delineated as a mineral resource.
Grassy North, which falls within Livingstone Trend, has been identified as the primary exploration target. This target is located on the southernmost leases of the Property package and is proximal to established infrastructure.
Pursuant to the joint venture, over the next 6 months the Company plans to undertake a drilling program at Elan which will focus on twinning a select number of historical drill holes to confirm coal seam thickness and coal quality. This additional information will also assist the Company in confirming the Exploration Target with a view to using modern exploration techniques to convert a part of the Exploration Target into a mineral resource in accordance with JORC 2012 guidelines.
Previous Exploration & Development
Coal exploration on and around the Elan project began in 1949, extending to 1976. Additional exploration was completed between 1971 and 2002.
The southern part of Elan is highway accessible by driving approximately 20 km north from
Transport to and from the property is by 4x4 truck and ATV.
A secondary Canadian Pacific rail line runs through
Accommodation, food, fuel and other necessary services are available in
Elan Acquisition Terms
Kuro has signed a binding Letter of Intent to acquire up to a 70% interest in Elan on the following terms:
Kuro will pay
To earn an initial 20% interest in Elan, Kuro will:
upon the execution of a formal and binding JV Agreement, pay the vendors
upon listing of Kuro on the ASX, issue the vendors 1,500,000 fully paid ordinary shares (subject to 24 months voluntary escrow) at a deemed issue price of
Kuro will allocate an initial
Kuro will be entitled to further increase its interest in Elan as follows:
it can increase to 45% by:
spending at least
completing a Scoping Study.
it can increase to 60% by:
spending a further
completing a Preliminary Feasibility Study.
it can increase to 70% by:
completing a Bankable Feasibility Study;
Kuro will issue fully paid ordinary shares (subject to 6 months voluntary escrow from the date of issue) upon the achievement of the following milestones:
400,000 fully paid ordinary shares upon the delineation of a
600,000 fully paid ordinary shares upon the delineation of a
800,000 fully paid ordinary shares upon the delineation of a 50Mt JORC Code compliant Measured Resource of coking coal (up to 15% non-coking coal may be used in calculating resource under this milestone) to a depth not exceeding 300m at the Elan project, with verification to be completed by a Competent Person under the 2012 JORC Code guidelines to the absolute satisfaction of Kuro.
1,000,000 fully paid ordinary shares upon the delineation of a
Subject to completing a Bankable Feasibility Study, Kuro will retain a right of last refusal to acquire the remaining 30% interest in the Elan project on commercially acceptable terms;
Kuro is the Operator to the Joint Venture;
The vendor of the Elan project shall have a free carried proportionate interest until the completion of the Bankable Feasibility Study, at which time each party will need to fund their proportionate expenditure, or dilute accordingly.
Atrum will be undertaking exploration at Panorama as soon as a Notice of Works has been granted for the relevant coal licences.
Kuro has now completed all of its intended pre-listing acquisitions and considers that it has the right portfolio of exploration and development assets to progress its ASX listing. The Company will now move to update the required independent expert reports, revise the Notice of Meeting and revise the Prospectus in preparation for formal ASX listing in Q4 this year.
Atrum shareholders can expect to receive a Notice of Meeting by mail in the next three weeks three weeks three weeks which will outline the IPO timetable as well as set the Record Date. Atrum shareholders will be entitled to receive one free Kuro share for every four Atrum shares held at the Record Date.
We thank shareholders for their patience and look forward to delivering an exciting new venture for stakeholders.
Tel: +61 415 493 993
Tel: +61 400 408 878
Tel: +61 420 582 887
Forward Looking Statements
This release includes forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'continue', and 'guidance', or other similar words and may include, without limitation statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.
Forward looking statements in this release include, but are not limited to, the capital and operating cost estimates and economic analyses from the Study. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance and achievements to differ materially from any future results, performance or achievements.
Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of resources or reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company's business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company's control.
Although the company attempts to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements.
Forward looking statements in this release are given as at the date of issue only. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.
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