To Spin-Out Kuro Coal Ltd Through ASX Initial Public Offering (IPO)
Perth, Mar 20, 2014 AEST (ABN Newswire) - Atrum Coal NL ("Atrum") (
ASX:ATU) (ATRCF:OTCMKTS) is pleased to update shareholders on the current status of the demerger and spin-out of its Naskeena Anthracite Project, Peace River Coal Project and Bowron River Coal Project, located in British Columbia, Canada.
Commenting on the Kuro Coal spin-out, Atrum Chairman Mr James Chisholm stated:
"The spin-out of Kuro Coal allows us to capture a great deal of potential value and provides an opportunity for Atrum shareholders to freely participate in the development of what we hope will be another world class coal explorer."
Kuro will drive shareholder value through the exploration and development of its current metallurgical coal project portfolio, as well as seek out new acquisition opportunities.
ASX LISTING AND IN-SPECIE DISTRIBUTION
Pursuant to the demerger and spin-out of the exploration assets into Kuro Coal, it is proposed that Atrum shareholders will receive 1 new Kuro Coal share for every 4 existing Atrum Coal shares held at the Record Date.
A notice of meeting to set the Record Date and approve the in-specie distribution of Kuro Coal shares will be despatched to the shareholders of Atrum Coal in April.
An Independent Geologist Report has been completed by AMC Consultants and this will be included in the prospectus despatched to both the public and existing shareholders of Atrum Coal.
Kuro Coal will seek to raise between $6 million and $8 million via a public offer prospectus at an issue price of 20 cents per share. A priority offer will be included in the prospectus which will allow existing shareholders of Atrum Coal to further participate in the demerger and spin-out.
Atrum is currently finalising demerger relief with the Australian Taxation Office and it is expected that a favourable class and product ruling will be delivered shortly. This will ensure a clear tax treatment outcome occurs for existing Atrum shareholders and the delivery of significant tax efficiency.
ASX code "KCO" has been reserved by the Company for the listing which is anticipated to be completed during Q2 2014.
APPOINTMENT OF DIRECTORS AND KEY MANAGEMENT
In addition to their Executive Director roles at Atrum, Mr Russell Moran and Mr Gino D'Anna have been appointed as Directors of Kuro Coal. Each brings a solid track record of success in the inception and management of junior exploration companies.
Mr Brad Van Den Bussche has been appointed as Vice President Exploration for Kuro Coal and provides strong technical capabilities. Mr Van den Bussche will continue in his role as Vice President Exploration for Atrum Coal, however due to Groundhog transitioning Atrum from explorer to developer, it is expected that this additional responsibility at Kuro will not impact his ability to continue his work duties at Groundhog.
Kuro Coal will appoint additional technical personnel in due course.
To complement Kuro's technical and strategic team, Mr Ron Knoedler has been appointed First Nations and Community Relations Officer. Mr Knoedler has a strong background in First Nations and community consultation and negotiation in British Columbia. He has a diploma from the British Columbia Institute of Technology as a Fisheries and Wildlife Technologist and a diploma from the British Columbia Institute of Technology as a Forestry Resources Technologist.
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.
| ||
|
