ATU 0.00% 0.5¢ atrum coal limited

Much to like about this announcement; * Atrum has acquired the...

  1. 1,786 Posts.
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    Much to like about this announcement;

    * Atrum has acquired the last remaining granted coal licences and coal licence applications in the Groundhog coalfield. The acquisition represents the complete consolidation of the known anthracite-bearing tenure in the Groundhog and Panorama area which totals 81,616 hectares.

    "The Groundhog coalfield in British Columbia, Canada boasts the world’s largest high grade and ultra-high grade anthracite endowment and we now own all the known anthracite-bearing tenure.

    Our long term strategy is to ultimately become the world’s largest exporter of high grade and ultra-high grade anthracite."


    * Material terms of the acquisition include a 1% gross revenue royalty or a US$1/tonne royalty (whichever is the higher) payable on anthracite produced from the assets acquired from Anglo Pacific only, US$500,000 payable in cash, a US$2.0m 8% promissory loan note repayable within 18 months, and 1,000,000 Atrum shares, which are escrowed for 18 months from the date of issue.



    * The coal licences that are being acquired have been under-explored and could hold significantly more anthracite than has been reported. It is likely that the mine plan at Groundhog North, which underpins the recent PFS, can be extended as the anthracite seams continue west into the new coal licences.  

    As a matter of priority, the Company plans to incorporate the newly acquired coal licences into the upcoming PFS revision for Groundhog North, which is expected to deliver substantial improvements in CAPEX, OPEX and project economics above what is already a tier one development opportunity.



    * A greater mining footprint in this area will allow the mine to operate for a far longer period and therefore make more effective use of planned project infrastructure. A number of other synergies from the acquisition are being actively investigated with the view to incorporating these into a revised Pre- Feasibility Study. Such measures would likely result in a higher NPV and IRR for Groundhog North.



    * The Company has recently embarked on an extensive marketing effort in Korea, Japan and China to potential customers.
    These discussions were very successful.

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    big picture;

    Despite the beating Coal has received over the past 3 years, analysts are confident the end of coal as a vital energy source is still many decades away.

    http://www.woodmac.com/public/industry-views/12150200


    Our analysis reveals that between 2014 and 2030, energy demand growth within Asia-Pacific will outpace that of North America by five times. Europe will become increasingly reliant on imports as India and China cement their positions as leading destinations for exporters of coal, oil and gas.

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    imo, when you consider that leading Australian coal company WHC has a MCap of $2bn & 1bn shares outstanding,
    ATU has a bright future (MCap ~$250m &  160m shares outstanding), many thanks to the white noise brigade, steal @ < $1.50 again this week :)

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    GLTAH
 
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