Colonial Coal Files Information Circular, Announces Amendment to Royalty Terms

Colonial Coal (TSXV:CAD) announced that it has filed its joint management information circular pertaining to shareholder meetings of Tuya Energy and Colonial where shareholders will be asked to approve Colonial Coal’s acquisition of Tuya. The company also announced the cancellation of a pre-production royalty payment on Colonial’s Huguenot Coal project, which will save the company further pre-production royalty payments of $750,000 per year until production commences at the project. This comes in exchange for a 1.5 percent production royalty on the Flatbed project, 1.35 percent of which is payable to certain directors of Colonial Coal.

As quoted in the press release:

The Joint Circular contains, among other things, details concerning the Arrangement, the background to and reasons for the Colonial board’s and the Tuya board’s favourable recommendation of the Arrangement, the requirements for the Arrangement to become effective, the procedure for receiving Colonial Shares issuable under the Arrangement for Tuya Shares, procedures for voting at the Meetings and other related matters. Colonial and Tuya shareholders are urged to carefully review the Joint Circular and accompanying materials, which includes a copy of the Arrangement Agreement, as they contain important information regarding the Arrangement and its consequences to Colonial and Tuya shareholders.

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