Atrum Coal (ASX:ATU) has announced it has signed an equipment financing agreement with the China Coal Technology and Engineering Group. As part of the agreement, CCTEG will provide several pieces of equipment that will allow Atrum to start developing its initial small scale mine at the Groundhog project in Canada.
The equipment financing facility has a term of 4 years and will have to be repaid in 3 annual installments from the second year on. The company will aim to repay a part of this equipment financing through selling 100,000 tonnes of anthracite coal to its Asian customers. It’s currently waiting to receive the permit to be allowed to extract 100,000 tonnes of coal as a bulk sample.
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Disclosure: The author holds no position in Atrum Coal. Please see our disclaimer for current positions.
