Anglo Pacific to sell Panorama interest to Atrum

ANGLO Pacific Group has entered into a definitive agreement with Atrum Coal to sell its interest in the Panorama coal project in Canada.

Lou Caruana

The total consideration comprises $US500,000 ($A534,000) cash payable to Anglo Pacific on completion, together with 1 million Atrum shares and a deferred consideration of $2.0 million in the form of a 12-month promissory note with an interest coupon of 8%.

In addition, the company will retain a royalty on coal sales from the assets being sold equivalent to the higher of 1% of gross revenue on a mine-gate basis or $1/tonne. Completion is anticipated to occur by September 2, 2014.

The Panorama coal project lies about 15km west of Atrum Coal’s Groundhog anthracite project in British Columbia, Canada and is believed to have anthracite-bearing potential.

Anglo Pacific continues to monetise non-core equity investments in order to realise cash for investment into royalty deals.

Anglo Pacific CEO Julian Treger said: “This transaction is consistent with Anglo Pacific’s strategy of monetising equity investments and growing our portfolio of royalties. We look forward to working with the Atrum Coal management team on the development of these coal properties in Canada.”