Kuro Coal Appoints Experienced Mining NED to the Board
Perth, June 2, 2014 AEST (ABN Newswire) - Atrum Coal NL ("Atrum" or the "Company") (
ASX:ATU) (ATRCF:OTCMKTS) is pleased to announce the appointment of Mr John Wasik to the Board of wholly owned subsidiary Kuro Coal Limited (soon to complete an IPO on the ASX under ticker code 'KCO').
Commenting on the appointment, Executive Director Mr Russell Moran stated:
"We are pleased to welcome John to the Board of Kuro. He has tremendous experience building and expanding major mines and we look forward to his contribution going forward."
Mr John Wasik BSc. (Min Ex) GAICD has spent 40 years in the international coal industry specializing in operations and mine development. He was Group Executive for Peabody Energy Corporations South Western Operations in the USA for five years where he was responsible for overseeing >20Mtpa of coal production for the world's largest private coal company. Prior to this, Mr Wasik was General Manager of Peabody's 6Mtpa Ravensworth/Narama mines for seven years.
Mr Wasik is Chairman of Ampcontrol Pty Ltd and a Non-Executive Director of Cobbora Holding Co, the NSW State Government owned 12Mtpa coal mine at Dunedoo, NSW. He is also a Non-Executive Director of Ebony Coal Limited.
As a Non-Executive Director, Mr Wasik will be paid a monthly director's fee of A$3,000, effective 2 June 2014.
The Company will issue Mr Wasik Performance Rights which, upon their achievement, will convert into shares (on a one for one basis) in Kuro Coal Limited. 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 Wasik 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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