Atrum Coal flags acquisition after board shakeup
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Canada-focused coal explorer Atrum Coal has entered a trading halt this morning on the back of a proposed acquisition.
The Sydney-based company (ASX:ATU) said in an announcement this morning that the trading halt would remain in place until start of trading on Wednesday 23 August 2017 or until the release of the acquisition announcement.
Today’s news comes after a recent massive board shakeup at Atrum.
Board members Tom Borman, Craig Burton and Michael Jardine resigned from the board to focus on other businesses. They were replaced with well-known coal identity George Edwards and Argonaut chairman Charles Fear on the board as non-executive directors.
Meanwhile, former chairman of the Coal Association of Canada Max Wang has taken the reigns as managing director while Chuck Blixt has been appointed to Non-Executive Chairman.
Atrum has a substantial coal position in British Columbia, Canada. According to Atrum, the region boasts an abundance of high quality anthracite and coking coals, well-developed rail and port infrastructure, access to deep sea ports, competitive shipping distance to Asia, and a pro-mining government.
Atrum is developing the world’s largest high grade anthracite deposit at Groundhog, which has a JORC resource of 1.57 billion tonnes of anthracite.
The company has formed an unincorporated Joint Venture with Atlantic Carbon Group PLC (AGC) to market and sell anthracite from ACG’s operations in north-eastern Pennsylvania, USA. Atrum expects the JV will provide it with greater access and exposure to international anthracite markets while providing cash flow for the development of Groundhog.
Prior to entering a trading halt, shares in Atrum were trading at 29c valuing the company at around $37 million.