A deal between Anglo American (AAUK-Q, AAL-L, AGL-J) subsidiary Anglo Coal Canada, Hillsborough Resources (HLB-T) and NEMI Northern Energy and Mining (NNE-T) will consolidate the three companies’ properties in the Tumbler Ridge coal district of northeastern British Columbia.
Under the deal a new company will be formed, in which the three will hold shareholdings in proportion to the value of the assets they have put into the company. Both Anglo Coal and Hillsborough have the right to contribute cash to the company in order to keep their interests at 60% and 20%, respectively. Anglo Coal will be the operator of the new company.
Hillsborough holds an 11-property group in the Tumbler Ridge area, including the Horizon Northridge property, where the company recently announced a resource estimate of 143 million tonnes indicated and 50 million tonnes inferred, split between medium-volatile and high-volatile bituminous coal suitable for coking.
Hillsborough had previously announced a 34-million-tonne indicated resource at the Wapiti steam-coal project in the same area, and a 46-million-tonne indicated resource at the Barbour-Horizon bituminous coal project.
NEMI’s assets are the Trend coal property, where a 26.2-million-tonne resource of metallurgical coal has been outlined at Roman Mountain, and a 50% interest, with Western Canadian Coal (WTN-T, WTN-L), in the Belcourt-Saxon partnership, which controls a land package of eight metallurgical coal properties in the area.
The company will be formed over the next three months, to allow for due-diligence investigations and valuations.
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