Montem Resources Corp (ASX:MR1) has renegotiated a land purchase agreement which related to the purchase a parcel of land that is planned to be used for a rail loading facility for the Tent Mountain Coking Coal Mine.
Under the original agreement from October 31, 2019, a final payment of C$2,535,400 was to be made on January 4, 2021.
The parties have agreed to an extension of this agreement under the following terms:
- Extension of agreement to January 4, 2022;
- Total purchase price C$3,000,000;
- Montem forfeiting the existing C$184,000 deposit on January 4, 2021; and
- Montem posting a new, non-refundable deposit C$275,000.
The company is pleased to extend this option over the planned rail loadout land for a further 12 months as it provides strategic value for the Tent Mountain Mine.
Tent Mountain Mine
Montem plans to restart mining at its Tent Mountain Mine, which has a JORC of 60 million tonnes and proven hard coking coal (HCC), having previously sold to Japanese steel mills.
The restart application has been submitted to the AER in the fourth quarter of 2020 and the company is targeting production by 2022, having secured rail and port capacity.
Over the past three years, Montem has significantly de-risked the project, having completed pre-feasibility and definitive feasibility studies and major permits already granted.
It has completed 7,000 metres of drilling which has confirmed the quality of tier 2 HCC, which is a 13% discount to premium HCC.
Montem has a portfolio of hard coking coal projects in western Canada’s Crowsnest Pass region including the Tent Mountain Mine re-start project, the Chinook Project and the greenfield exploration Isola, 4-Stack and Oldman projects.
