Kuro Coal Receives Grant of Peace River Coal Licences
Perth, Oct 10, 2014 AEST (ABN Newswire) - Kuro Coal Limited ("Kuro" or the "Company") is pleased to announce that following First Nations and community consultation, the Company has received four coal licences in the Peace River Coalfield, British Columbia, Canada.
Kuro Coal is a wholly owned subsidiary of Atrum Coal NL ("Atrum")(
ASX:ATU) (ATRCF:OTCMKTS) and will be separately listed on the ASX under the code "KCO" following an Initial Public Offering.
Commenting on the granting of the coal licences, Atrum Coal Executive Director and Kuro Coal Non-Executive Director Mr Gino D'Anna stated:
"Kuro has an exciting portfolio of metallurgical coal opportunities in Canada. We look forward to maiden exploration later this year."
The four granted coal licences total 5,239 hectares and are located in the coking coal rich area of Peace River. Licences were granted following consultation with local First Nations bands.
The Company is preparing a Notice of Work to conduct exploration across the four granted coal licences, which will initially comprise surface mapping, trenching, sampling and scout drilling of identified targets.
PEACE RIVER COAL PROJECT OVERVIEW
The Peace River Project is located approximately 30 km west of the Wapiti Coal Project, owned by Hillsborough Resources Limited, approximately 40 km east of the operating Brule Mine, owned by Walter Energy Inc, and 35 km north of the Perry Creek/Wolverine Mine, owned by Walter Energy Inc. It is located on the western margin of the Western Canadian Sedimentary Basin and the eastern fringe of the Rocky Mountain foothills fold belt.
The coal licenses are located approximately 300 km north east of Prince George. The Chetwynd Highway (29) runs approximately 25 km to the west of the property and the Heritage Highway (52) runs approximately 10 km to the east of the property. Both highways connect at the locality of Tumbler Ridge, approximately 16 km south of the property.
IPO TIMETABLE
Kuro is satisfied with its due diligence investigations on the Elan Coking Coal Project in which it has agreed to acquire a 70% through a farm in arrangement. The Company is currently finalising the joint venture documentation with the Elan vendors and once executed, the IPO will proceed. Shareholders can expect further updates on the timetable later this month and despite recent delays, Atrum is on track seek shareholder approval for the spin out in 4Q 2014.
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http://media.abnnewswire.net/media/en/docs/ASX-ATU-694376.pdf
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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