Allegiance Coal has agreed to acquire Telkwa Coal, the owner of a farm-in agreement over an advanced metallurgical coal project in the mid-west of British Columbia.
The project is located in the Telkwa Coalfield, in the southern reaches of Bowser Basin, where Atrum Coal is currently developing its Groundhog Project some 300 km to the north.
In February 2015, a JORC compliant technical report confirmed a 165 million t coal resource at the project, 89 million t of which was in the measured resource category. Coal quality testing position Telkwa coal as a semi-soft coking coal.
Telkwa Coal’s farm-in agreement was acquired from Altius Minerals Corp., which acquired the project as part of its purchase of producing mines from Sherrit Corp. in April 2013. Under the farm-in agreement, Telkwa has the right to earn up to a 90% project ownership.
Allegiance Coal’s acquisition is subject to a number of conditions, including shareholder approval and the successful completion of a AUS$1 million capital raising.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/finance-business/23092016/allegiance-coal-to-buy-telkwa-coal-2016-2454/