Kuro Coal Ltd. announced Oct. 10 that following First Nations and community consultation, it has received four coal licences in the Peace River Coalfield of British Columbia, Canada.
Kuro Coal is a wholly owned subsidiary of Australia’s Atrum Coal NL (ASX:ATU) (OTCMKTS:ATRCF) and will be separately listed on the ASX under the code “KCO” following an Initial Public Offering.
Atrum Coal Executive Director and Kuro Coal Non-Executive Director 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.
The Peace River Project is located: approximately 30 kilometers west of the Wapiti Coal Project, owned by Hillsborough Resources Ltd.; 40 kilometers east of the operating Brule Mine, owned by Walter Energy; and 35 kilometers north of the Perry Creek/Wolverine Mine, owned by Walter Energy.
The Chetwynd Highway runs approximately 25 kilometers to the west of the property and the Heritage Highway runs approximately 10 kilometers to the east of the property. Both highways connect at the locality of Tumbler Ridge, approximately 16 kilometers south of the property.
Kuro said it 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 currentlyz the joint venture documentation with the Elan vendors and once executed, the IPO will proceed. Despite recent delays, Atrum is on track seek shareholder approval for the spin out in the fourth quarter of this year.