Atrum Coal NL out of Australia, which is developing coal properties in western Canada, on July 14 offered an update on the Western Australia Supreme Court proceedings and the Federal Court of Australia proceedings involving two former directors.
An agreed no-liability settlement has been reached in both proceedings, which will be dismissed by consent.
Bob Bell, Executive Chairman of Atrum, commented: “We are pleased to announce that all litigation with the former founders and BC Anthracite has ceased, and we can now focus our attention on developing the Groundhog region. The companies have agreed to work together to explore infrastructure options in the region, with the view to develop access to tidewater for the BC Anthracite and Atrum properties in Groundhog. It’s good to place this issue behind us so that Atrum can continue with developing our Phase 1 mine. Interest in the Company’s anthracite is strong and we continue to field requests for supply as soon as possible.”
Russell Moran, Executive Chairman of BC Anthracite NL, commented: “The Groundhog Coalfield represents a once in a lifetime opportunity. We are pleased to have reached an agreement with Atrum on how best to work together to maximise value and opportunity for all stakeholders. We look forward to seeing Bob Bell take a vision that has been the hard work of many over the past 5 years and turn it into the world class operation it is destined to be. On a personal note, Mr D’Anna and I would like to thank all shareholders for their continued support for the Company during a tough time and we look forward to sharing in what we believe will ultimately be a tremendous success.”
As part of the settlement, Atrum through its wholly owned subsidiary, Atrum Coal Groundhog Inc., has been granted five tenements from BC Anthracite Inc. that will be amalgamated with the company’s Groundhog East Project. As well, BC Anthracite has offered a 1.5% ex-mine gate royalty over 25 of its tenements to Atrum and a 0.5% ex-mine gate royalty over six of its tenements. The companies have also agreed to work together to develop infrastructure solutions for the Groundhog region, with the aim of sharing the costs of infrastructure development.
Atrum Coal is an emerging metallurgical coal explorer and developer. The company has a substantial coal position in British Columbia. The company is building a quality portfolio of metallurgical coal assets suited to the Asian export market and the Board of Directors have a strong track record in identifying and developing world class coal assets in Australia and abroad.