Kuro Coal Appoints Experienced Non Executive Director
Perth, May 1, 2014 AEST (ABN Newswire) - Atrum Coal NL ("Atrum" or the "Company") (
ASX:ATU) (ATRCF:OTCMKTS) is pleased to announce the appointment of Mr Andrew Phillipps to the Board of Kuro Coal Limited (to be listed via IPO under ASX ticker code 'KCO').
Commenting on the appointment, Executive Director Mr Russell Moran stated:
"We are pleased to welcome Andrew to the Board of Kuro. He has an exceptional reputation in the coal space and we look forward to his input as Kuro develops its exploration assets."
Mr Andrew Phillipps BSc, BCA has spent 20 years in corporate finance having held senior roles with UBS in both Australia and New Zealand, Cameron Partners and ANZ Funds Management. He recently held the position of Executive Director for UBS AG in Australia involved in both executing and leading some of Australia's largest coal M&A and financing transactions.
At UBS, Mr Phillipps advised Yanzhou Coal on its A$3.3 billion acquisition of Felix Resources, its acquisition of Syntech Resources, its divestment of 51% of the Minerva mine to Sojitz, its acquisition of 30% of the Ashton mine from IMC and its subsequent merger with Gloucester Coal.
He has also worked on a number of significant M&A and financing transactions involving major clients including the New Zealand Treasury, Whitehaven Coal, Gloucester Coal, Centennial Coal, Freightlink, Anglo American, Prime Infrastructure, the Canada Pension Plan Investment Board and AGL.
As a Non Executive Director, Mr Phillipps will be paid a monthly director's fee of A$3,000, effective 1 May 2014.
The Company will issue Mr Phillipps Performance Rights which, upon their achievement, will convert into shares (on a one for one basis). The milestones attached to the Performance Rights are set out below:
Class 1: 60,000 Performance Rights will be issued to the Director or its nominee and will convert into Shares upon the VWAP of the Company's Shares as traded on ASX over 20 days being equal to or exceeding $0.50;
Class 2: 60,000 Performance Rights will be issued to the Director or its nominee and will convert into Shares upon the achievement of a JORC Inferred Mineral Resource of not less than 150Mt of metallurgical coal over the projects in which the Company has a beneficial interest;
Class 3: 60,000 Performance Rights will be issued to the Director or its nominee and will convert into Shares upon the achievement of a JORC Indicated Mineral Resource of not less than 50Mt of metallurgical coal over the projects in which the Company has a beneficial interest;
Class 4: 60,000 Performance Rights will be issued to the Director or its nominee and will convert into Shares upon the completion of a positive pre-feasibility study at any of the projects in which the Company has a beneficial interest; and
Class 5: 60,000 Performance Rights will be issued to the Director or its nominee and will convert into Shares upon the Company successfully securing a binding unconditional off-take agreement with a suitable party as agreed by the Company in respect of any of the projects in which the Company has a beneficial interest.
The service agreement with Mr Phillipps otherwise contains standard terms and conditions for agreements of this nature including notice periods in the event of termination and expense reimbursements.
About Atrum Coal Limited
Atrum Coal Limited (ASX:ATU) is a metallurgical coal developer. The Company flagship asset is the 100%-owned Elan Hard Coking Coal Project in southern Alberta, Canada. Elan hosts large-scale, shallow, thick, hard coking coal (HCC) deposits with a current JORC Resource Estimate of 298 Mt (70 Mt Indicated and 228 Mt Inferred). Comprehensive quality testing of Elan South coal on samples from the 2018 exploration program, combined with review of substantial historical testwork data for the broader Elan Project, has confirmed Tier 1 HCC quality.
The initial focus for development is the Elan South area, which is located approximately 13 km from an existing rail line with significant excess capacity, providing direct rail access to export terminals in Vancouver and Prince Rupert. Elan South shares its southern boundary with Riversdale Resources Grassy Mountain Project, which is in the final permitting stage for a 4.5 Mtpa open-cut HCC operation. Around 30km to the west, Teck Resources operates five mines (the Elk Valley complex) producing approximately 25 Mtpa of premium HCC for the seaborne market.
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