Bathurst intends to increase its exposure to steelmaking coal. Credit: Jason Benz Bennee/shutterstock.com.

Coal mining company Bathurst Resources has agreed to acquire the Tenas coking coal project in British Columbia (BC), Canada, from Allegiance Coal’s subsidiary Telkwa Coal.

Located 7km south-west of Telkwa, BC, the Tenas project comprises the Telkwa metallurgical coal complex.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

As per the deal, Bathurst Resources will acquire the coal licences and property interests, along with certain contracts, vehicles, records, permits, licences and intellectual property associated with the Tenas project.

In exchange, the company will initially make an upfront payment of $2.33m at the closing of the transaction, as well as pay $1m within 45 days of the closure.

Bathurst will also pay $4m to develop, construct and operate the Tenas coking coal project upon the receipt of all final permits.

Furthermore, Telkwa Coal will receive $3m on the first anniversary of receiving all final permits.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The agreement also involves a capped royalty of up to $3m, which is payable at the rate of $2 per tonne pertaining to coal sales from the Tenas project. This is effective for the first three years following the start of commercial production from the project.

The acquisition forms part of Bathurst Resources’ efforts to increase its exposure to steelmaking coal.

Bathurst Resources CEO Richard Tacon said: “In the Tenas coking coal project we have a commodity in high demand globally, and in which we have proven expertise and existing clients.

“The project is also well-located in a tier-one jurisdiction in which we have invested since 2018, and in which we are very comfortable. Finally, the acquisition has been secured at a price and on terms that are clearly opportunistic for our shareholders.”

Subject to certain conditions, the transaction is expected to close in the coming months.

The Tenas coking coal project is expected to receive environmental approval in early 2025.