Telkwa Coal Project (BC, Canada)

In September 2014 Altius entered into an option and royalty agreement concerning its Telkwa coal project with a private company, Telkwa Coal Ltd. ("TCL"), being funded out of Australia. Altius acquired the Project a few months prior as part of its acquisition of the Carbon Development Partnership ("CDP").

Recently in September 2016, TCL announced a conditional binding agreement to be acquired by an Australian based public issuer, Allegiance Coal Ltd. (“Allegiance”) (AHQ:ASX). Upon successful regulatory and shareholder approvals of the proposed transaction Altius expects to be a significant shareholder (>5%) of Allegiance while retaining a project level royalty over the Telkwa project.


The terms of the agreement allow TCL the right to earn up to a 90 percent interest in the Telkwa project in exchange for staged milestone payments. Altius will retain both a sliding scale gross sales royalty that ranges between 3% and 4.5% depending upon benchmark coal prices at the time of any coal sale and a 10% project interest. Altius has elected to receive pending milestone option payments in the form of shares that will result in Altius receiving shares in Allegiance, representing approximately 5% to 6% of the pro-forma outstanding shares of Allegiance, depending on the level and pricing of capital raising that Allegiance completes as part of the acquisition.

Project Overview

Since optioning the project TCL commissioned a Canadian NI 43-101 JORC Compliant Technical Report in February 2015 which confirmed a 165 Mt coal Resource, including 89 Mt in the Measured Resource category, as defined by the JORC Code. TCL also commissioned a report to assess coal quality and coal market options in July 2015 and concluded that Telkwa coal is a semi-soft coking coal with the potential to compete alongside Queensland and New South Wales semi-soft coking coals. The project is located immediately adjacent to Canadian National Railway’s mainline that runs direct to the deep-water port of Prince Rupert, a 390 km rail haul from the project’s planned siding direct to Ridley Island Coal Terminal.

A copy of the ASX announcement which contains the detailed specifics of the Farm in Agreement obligations to Altius, various remaining agreement approval requirements and a detailed overview of the project including the Competent Persons Statement is available at

© Copyright 2017 Altius Minerals Corporation