- Setting the strategic direction of the company,
- Prioritising the development of high value coking and metallurgical coal assets,
- Maximising available cash to advance projects, and
- Divesting non-coal assets.
Exploration Focused Company
The Company has undergone an internal review of its asset base and confirms the strategic direction of the Company is to focus on the exploration and development of its 100% owned assets. The Elko Coking Coal Project remains the focus of activities and is the most significant asset within the portfolio.
The Company will also commence preliminary activities on other assets, including the South Hazell Project located in the East Kootenay Coal Basin. The Company aims to increase knowledge of its broader portfolio so as to develop a pipeline of projects at varying stages of development.
With a strategy focused on the exploration of coking and metallurgical coal opportunities, the Board has considered ways to secure the necessary cash reserves to support these activities. The Board has considered the merits of each of its assets and investments and where necessary, has decided to divest certain assets to achieve the Company's strategy.
The Company remains very positive about the Elko Coking Coal Project and look forwards to updating shareholders on developments at Elko.
As previously mentioned, the Company has submitted the necessary documentation to support a Notice of Works (NOW) required to commence drilling at the Elko Coking Coal Project. The Company has undertaken the logistics required to undertake drilling once the NOW is approved.
Divestment of Non-Coal Assets
During the strategic review, PAK considered its ongoing investment in Imagine Intelligent Materials (Imagine).
Based on the Company's focus to develop its 100% owned Canadian assets, the Company has decided to divest its 30% position in Imagine. Similar to the divestment of GCI last year, the proceeds from the sale of Imagine will strengthen free cash available to develop the Elko Coking Coal Project. The Company has finalised a Sales and Purchase Agreement with an unrelated third party to acquire PAK's holding in Imagine.
About Pacific American Coal Ltd
Pacific American Coal Ltd (ASX:PAK) flagship Elko Coal Project contains an identified Mineral Resource of 257 million tonnes of hard coking coal. It is located in the Crowsnest Coalfield of the East Kootenay Basin in British Columbia, Canada, which hosts a number of operational coal mines. Coal from the Elko region has been tested and confirmed to contain properties sought after by South East Asian steel mills. It has established geographically proximate infrastructure and supportive local communities.
Pacific American Coal Ltd