CALGARY, Sept. 6, 2017 /CNW/ - Altitude Resources Inc.
(TSX-V:ALI) is pleased to announce that Kuro Coal Limited
("Kuro") and Kuro Coal Canada Inc ("Kuro Coal
Canada"), have entered into a Share Sale Deed ("SSD")
under which Kuro Coal Canada will purchase 100% of Elan Coal
Ltd. Kuro will list on the ASX, TSX-V or an alternative
international exchange through an Initial Public Offering in the
next six months ("Proposed Transaction"). ALI has a 15%
minority interest in Elan Coal Ltd. The Elan Coal Project is the
only asset owned by Elan Coal Ltd.
The total value of the transaction is CDN $6.75 million in a combination of cash and
shares. Completion of the Proposed Transaction is subject to a
number of conditions that have not yet been satisfied. As
consideration for the acquisition of Elan, the Vendors (inclusive
of Altitude) will receive total cash consideration of C$3.1 million (including C$100,000 which was paid on the signing of the
Sale Purchase Agreement) and the issuance of Consideration Shares
in the newly listed public entity valued at CDN $3.65 million. Based on the terms of the SPA,
ALI's net interest in the Kuro-Elan transaction is valued at
$1,012,500 ($465,000 in cash and $547,500 in Consideration Shares).
Under the SSD, the Vendors have agreed to an initial exclusivity
period expiring on 30 September 2017. However, if before that
date, Kuro files certain applications for drilling permits at the
Grassy North Project, completes field mapping at Grassy North, and
confirms that its preliminary geological due diligence has been
completed to Kuro's satisfaction, the exclusivity period will be
extended to 30 June 2018. The SSD also requires Kuro to have
finalised and lodged its prospectus and listing application (for
listing on the ASX or an Alternative Stock Exchange) before
31 March 2018.
About the Elan Property
The Elan property comprises 27 Alberta Crown Coal Lease
Applications covering an area of approximately 22,951 hectares.
Elan has identified six different zones of potential coking coal
development over a 55 km strike length. Elan is located in the
foothills and front ranges of the Rocky Mountains of Alberta, approximately 30 km north of
Coleman in Alberta. The project is 12km north of the main
rail line operated by Canadian Pacific Railway, providing access to
export terminals in Vancouver, and
north to Prince Rupert. The
majority of the Elan properties are accessible by paved highway as
well as a system of limited use roads and access trails.
The Elan property resources are documented in a 43-101 Technical
Report authored by Dahrouge Geological Consulting Ltd., with an
effective date of September 10, 2013.
The Technical Report is a compilation and evaluation of historic
exploration, resulting in a Compliant Resource Estimate.
The Property contains low- to medium- volatile bituminous coal
suitable for metallurgical uses. Resources fall mainly in the
'complex' category as defined by GSC Paper 88-21. A constant bulk
density value of 1.44g/cm3 was assumed across the
property and was determined from the coal rank and average ash
contents as defined in GSC 88-21. The resource estimation was based
on block modelling. The Elan Project lies within Category 2 land
zone with respect to coal exploration and development as designated
by the 1976 Coal Development Policy for Alberta.
Further key assumptions and details used in the modelling and
resource estimate can be found in the "NI 43-101 Technical Report
on the Elan Coal Property" dated September
10, 2013 located on SEDAR.
The in-place resources for the Elan Property areas are
summarized in Table 1.
Table 1:
Statement of
Resources NI 43 101
Coal Resources
(Mt)
|
|
ASTM Group
Type
|
Indicated
|
Inferred
|
|
Savanna
|
Low to Medium
Volatile Bituminous
|
28.8
|
29.9
|
|
Isolation
|
Medium
Volatile Bituminous
|
1.3
|
0.8
|
|
Isolation
South
|
Low to Medium
Volatile Bituminous
|
31.9
|
53.8
|
|
Total
|
-
|
61.9
|
84.6
|
|
- Any discrepancy in totals are the result of rounding
errors.
Location Map
Commenting on the Elan sale transaction, Gene Wusaty, President and CEO said, "We are
very pleased to monetize Altitude's 15% minority interest in Elan
Coal Ltd. This transaction provides an immediate working capital
infusion while allowing Altitude to continue to share in the upside
of the Elan property through its equity stake in the newly listed
company. The proceeds from the sale are expected to contribute
to our continued exploration work at our Altitude North project as
well as general working capital."
Gene Wusaty, Altitude's Chairman,
a qualified person as defined by NI 43-101, supervised the
preparation of the technical information in this release.
About Altitude Resources
Altitude Resources is a Canadian coking coal exploration and
development company focused on developing its portfolio of coking
coal properties in west-central and southwest Alberta.
Altitude's properties are all located close to rail which has
capacity to provide transport product to deep-water ports on the
west coast of Canada to service
the growing demand from world markets.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Cautionary Statement Regarding Forward-Looking
Information
This news release contains "forward looking information" within
the meaning of applicable Canadian securities legislation. Forward
looking information includes without limitation, statements
regarding the size and quality of the Company's mineral resources,
progress in the development of mineral properties, future capital
and operating expenses, the future financial or operating
performance of the Company, the prospective mineralization of the
properties, planned exploration programs and the anticipated
production schedule. Generally, forward looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is based on assumptions that
have been made by the Company as at the date of such information,
including those assumption described in the Company's technical
report entitled "Resource Estimate of the Palisades Coal Property"
dated November 28, 2011 which is
available at www.sedar.com. Forward-looking information is subject
to known and unknown risks, uncertainties and other factors that
may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to: the future price of coal, industry market
trends and predictions, the estimation of mineral reserves and
resources, operating and exploration expenditures, costs and timing
of future exploration, requirements for additional capital,
government regulation of mining operations including changes in
government policies, environmental risks, reclamation expenses,
title disputes or claims, limitations of insurance coverage,
regulatory matters, and other risks described in the public filings
of the Company. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
SOURCE Altitude Resources Inc.