22/05/2012 - 15:28

Attila flying on coal project option

22/05/2012 - 15:28

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Attila flying on coal project option

Attila Resources shares have rocketed on the Australian Securities Exchange, after the Perth-based miner announced it had signed an option to acquire a 70 per cent interest in Alabama-based Kodiak Mining.

Attila said today it had signed a binding heads of agreement to purchase a 70 per cent stake in Kodiak, which owns an underground coking coal mine in Alabama’s Shelby County.

The project is located in the Cahaba coal basin, Alabama’s oldest mining district, and was placed on care and maintenance in 2008.

Attila’s consultant, Stagg Consultancy, has determined the project contains an exploration target of 80-100 million tonnes of hard coking coal.

The company can secure its stake in the Kodiak project by paying $US11.15 million to acquire all mining licences and permits covering the development, replacing environmental bonds and acquiring the project’ mining rights lease.

Attila will also reimburse past expenses incurred by Kodiak, up to $1 million.

By close of trade today, Attila stocks were up a whopping 122 per cent, trading at 40 cents.

The company also announced today it had entered discussions with brokers regarding a $2 million share placement, to be priced at 20 cents per share.

The funds raised will go towards due diligence expenses on the project, continued exploration at its Talisker North project, and for general working capital.

Konkera Corporate is acting as Attila’s corporate adviser.

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