Attila Resources (ASX: AYA) have entered into an agreement to divest their 70% interest in the Kodiak coking coal project for US$55.3m

Attila Resources (ASX: AYA) have entered into an agreement to divest their 70% interest in the Kodiak coking coal project for US$55.3m. There are a number of conditions to be met for the transaction to succeed, however, Attila hopes to conclude the transaction during the first quarter of 2015. As we highlighted in our initiation report, we believe Kodiak is an outstanding project, however, we are aware of the current economic environment for resource stocks, which continues to trade at yearly lows and unfortunately there is no certainty as to when the market may recover. Given this and the risk that would be associated with future funding and development of Kodiak, the current offer appears fair and reflects those risks. We note one risk with the proposed transaction, as the acquiring party, still requires to raise the funds to complete the transaction. However there management team's experience at raising funds for as well as operated a number of highly successful mining company's. We have examined the potential cash backing to Attila post the transaction. goo.gl/WV3LLR