Aug 12, 2013
Altitude Resources Inc. Signs Exploration and Option Agreement with Elan Coal Ltd. to acquire up to 51% Interest in an Alberta Coking Coal Project
Property Location Map
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In consideration, the Company will make an initial refundable cash payment of $200,000 ("the Initial Payment") to Elan to fund reconnaissance field work during calendar Q3 of 2013. Upon receipt of the Initial Payment, Elan shall provide the Company with a 120 day exclusivity period to complete due diligence and complete a financing of a minimum of $2,000,000 ("Financing"). The Initial Payment shall be reimbursed by Elan to the Company in the event that the Financing is not completed and final approval of the TSX Venture Exchange has not been obtained. In the event that the Financing is completed and the Company is not satisfied with the results of the due diligence, 50% of the Initial Payment ($100,000) will be returned upon the Company providing Elan of its intention not to proceed with the Option.
Commenting on the transaction, Andrew Wusaty, President and CEO said "This is a great opportunity for Altitude to have a direct involvement in a second exciting early stage coking coal project. Similar to Altitude's Palisades project, Elan's Leases are strategically located near existing infrastructure with spare capacity. There has been a significant amount of information accumulated based on the extensive exploration work performed on these properties which includes drilling, trenching, adits and washability technical data. Elan has initiated a National Instrument 43 -101 Resource Report which is expected to be available later this year".
ELAN COAL LEASES
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The Elan Leases extend for 55 kms northward from Crowsnest Pass along strike in the Kootenay Group coal formation. Five different areas of interest with surface mineable potential have been identified from historic exploration work carried out by companies including CONSOL, Devon Canada, Granby Mining, CanPac Minerals, and Canadian Hunter dating back to the 1940's. More than ten coal seams have been identified on the properties with thicknesses ranging from 3 to 10m. Coal quality is low to medium volatile with variable but generally moderate ash content, with good washability and coking coal properties.
Pursuant to the Agreement, in order to maintain the Right to Explore and the Option, the Company shall be required to meet the following payment deadlines:
The Company has retained IBK Capital Corp. of Toronto to complete, on a best efforts basis, an equity financing of up to $5 million in order to meet its obligation under the Agreement and for general working capital purposes. Additional details with respect to the Financing will be released by the Company over the coming weeks.
About Altitude Resources
Altitude Resources is a new Canadian coking coal exploration and development company focused on developing its portfolio of coking coal properties in west-central Alberta, Canada. Altitudes most advanced property, the Palisades Coal Project, is located approximately 12 kilometres from CN rail which has capacity to provide transport of coal to deep-water ports on the west coast of Canada to service the growing demand from world markets. Initial drilling by Altitude on the Palisades Coal Project is expected to commence by mid-August 2013.
Information contacts, Altitude Resources
Investors: Doug Porter, CFO (403)453-3298
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
You can view the Next News Releases item: Wed Sep 11, 2013, Altitude Announces Maiden NI 43 -- 101 Coal Resource On Elan Coal's Alberta Coking Coal Project
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