As per the agreement, Attila has the option to secure the mining rights to two coal seams which are found throughout the Kodiak Project in the Cahaba coal basin in Shelby County, owned by Kodiak Mining Company.
The Atkins and Coke coal seams have previously been surface mined and range in thickness between 0.9m to 3.0m and average about 1.33m to 1.6m.
By paying $11.15m, Attila can acquire all mining licences and permits to recommence mining operations, and will also reimburse past expenses incurred on the project of up to $1m.
Attila Resources noted the project contains an exploration target of 80-100 million tones of hard coking coal, based on 118 historically drilled coal bed methane wells and diamond core holes on 7770 acre property.
The company stated coal at Kodiak has high quality with low ash and sulphur content, very high fixed carbon, suited for export metallurgical markets or blending for domestic markets.
Attila intends to enter into a management services agreement with its major joint venture partner, TBL Metallurgical Resources, for management services in connection with the operation and development of the Kodiak Project.
Kodiak owns all of the permits and licences to recommence mining operations, including full infrastructure such as ash plant and rail infrastructure, and the surface land rights on which the infrastructure is located.
Drilling will commence to establish a JORC Resource after Attila exercises its option to the Kodiak project.
