Join our daily newsletter At The Bell to receive exclusive market insights
- Montem Resources (MR1) has renegotiated a land purchase agreement for one of its Canadian projects
- The steelmaking company has a portfolio of hard coking coal projects in Canada’s Alberta and British Columbia’s Crowsnest Pass region, including the Tent Mountain Mine re-start project
- At the end of October 2019, Montem agreed to purchase a parcel of land to be used for a rail loading facility for the Tent Mountain Mine
- The land was set to cost MR1 roughly C$2.53 million (about A$2.58 million), with the payment to be made on January 4, 2021
- That deadline has now been extended by a year, while the price has increased to C$3 million (roughly A$3.6 million)
- Montem has also had to forfeit the existing deposit and posted a new, non-refundable deposit of C$275,000 (around A$280,000)
- Montem Resources is down 2.27 per cent, trading at 21.5 cents per share
Montem Resources (MR1) has renegotiated a land purchase agreement for one of its Canadian projects.
The steelmaking coal development company owns and leases coal tenements in the Canadian provinces of Alberta and British Columbia.
The company has a portfolio of hard coking coal projects in western Canada’s Crowsnest Pass region, including the Tent Mountain Mine re-start project.
At the end of October 2019, Montem agreed to purchase a parcel of land to be used for a rail loading facility for the Tent Mountain Mine.
The land was set to cost MR1 roughly C$2.53 million (about A$2.58 million), with the payment to be made on January 4, 2021.
The parties have agreed to an extension of the payment deadline for this agreement.
MR1 will now have an additional year to pay for the land, however, it will come at a cost.
The price has now increased to C$3 million (roughly A$3.6 million), payable by January 4, 2022.
Montem also had to forfeit the existing deposit for the land and posted a new, non-refundable deposit of C$275,000 (around A$280,000).
Tent Mountain Mine has a Joint Ore Reserves Committee of 60 million tonnes and proven hard coking coal, with the company targeting production by 2022.
The company first purchased the mine in 2016 and has since conducted several drilling campaigns as well as two years of environmental monitoring at the site.
Montem said it was pleased to extend this option over the planned rail loadout land for a further 12 months as it provides strategic value.
MR1 is down 2.27 per cent, trading at 21.5 cents per share at 2:58 pm AEDT.
