Atrum Coal (ASX:ATU) has announced a binding term sheet with Panorama Resources for the sale of its Canadian subsidiaries, Atrum Coal Groundhog and Atrum Coal Panorama.
Atrum Coal Groundhog holds complete interest in the Groundhog Anthracite Coal Project, while ACPI holds a 65% interest in the Panorama Anthracite Coal Project.
Panorama Resources, associated with Perth-based Perk Capital Advisors, will handle the projects.
The agreement is subject to conditions like due diligence and regulatory approvals, and Atrum has granted exclusivity to Panorama until Dec. 31.
Atrum will receive an initial $100,000 upon completion, and additional payments on subsequent anniversaries.
Panorama will also pay considerations tied to obtaining permits and achieving production milestones.
Glen Koropchuk, Chair of Atrum, stated, “The sale of the Groundhog and Panorama project assets allows Atrum to focus on delivering a favourable outcome for Shareholders in the Elan Coal Limited claim against the Government of Alberta.”
Atrum aims to finalise the sale documentation by Nov. 15, with completion by the end of November.
Atrum Coal is an Australia-based metallurgical coal development company engaged in the Elan Hard Coking Coal Project, which is located in the Crowsnest Pass area of southern Alberta, Canada.
At the end of reporting, Atrum Coal’s share price was $0.005.