The Group retained a royalty on the Groundhog anthracite project located in north-west British Columbia, Canada, following its disposal of the related mining licences in 2014 to the project’s operator, ASX-listed, Atrum Coal Limited (‘Atrum’). The royalty entitles the Group to the higher of 1% of gross revenue on a mine gate basis or US$1.00/t from coal sales derived from the Panorama licences. Following a series of discussions during 2016, an agreement was reached to settle amounts outstanding under a promissory note in return for additional royalties as follows:
0.5% GRR covering all production within Atrum’s Groundhog Anthracite Project (‘Groundhog’) tenements from first production until ten years from the date that Atrum declares commercial production on the project; and subsequently
0.1% GRR from production within the Groundhog North Mining Complex project area
Atrum’s focus for 2019 was on the Elan project, and so there was limited progress in relation to the Groundhog licences. Atrum is hoping to complete their expanded Elan feasibility study in Q1 2020.