Altius Minerals Corp. (TSX: ALS) on July 15 announced that it has completed an agreement to transfer certain of its CDP mineral lands in central Alberta to Westmoreland Coal (NasdaqGM: WLB) in exchange for future production royalties.
CDP is a wholly owned subsidiary of Altius Prairie Royalties Corp. and was acquired in May 2014 as part of the acquisition of a portfolio of coal and potash royalties from Sherritt International. At around that time Westmoreland, based in the U.S., bought the operating Canadian coal mines of Sherritt.
Westmoreland operates the Paintearth and Sheerness coal mines in central Alberta, Canada, which provide thermal coal to the Battle River and Sheerness power stations, respectively. The subject lands are located in close proximity to current mine permit areas and are known to contain near-surface coal resources. The royalty rate remains confidential but is consistent with the inflation adjusted tonnage based rates of existing agreements in Alberta, Altius noted.
Altius CEO Brian Dalton said: “This agreement represents an important milestone for Altius in that it brings solid potential for the creation of a new production royalty from our extensive portfolio of undeveloped mineral lands and validates the project generation and royalty creation component of our overall growth strategy. Altius maintains other extensive mineral land holdings in western Canada that include coal reserves and resources, several of which have been the subject of advanced project level studies and evaluations and that represent additional future development options.”
Altius is a diversified mining royalty company with royalty interests in thirteen producing mines located in Canada. The royalty interests include mining operations that produce electrical coal, potash, copper, zinc, nickel, metallurgical coal, gold, silver and cobalt.