Atrum Coal has started discussions with Kuro Coal for a joint venture deal for the development of its Panorama anthracite project.
The joint venture agreement is expected to be finalized next week following which Atrum will able to finalize its ATO demerger relief application and complete the IPO and ASX listing of Kuro.
Atrum Coal executive director Russell Moran said, "A joint venture at Panorama is a win-win for Atrum and Kuro. The deal creates co-development and co-marketing opportunities that will benefit both companies."
Located approximately 20km west of Atrum’s Groundhog anthracite project in British Columbia, Canada, the Panorama anthracite project consists of two granted coal licenses totaling 850 hectares, subject of the proposed joint venture.
The JV will allow Atrum management to focus on developing Groundhog project, while Kuro can share the costs associated with future port, power and road upgrades from the Groundhog and Panorama sites through to Stewart, and potentially, rail line development.
Kuro Coal is the spinout company of Atrum Coal and will be listed through IPO.