Attila Resources has just confirmed a deal to sell its 70% interest in the Kodiak coking coal project in Alabama for $US55.3 million ($A63.5 million), while Modun Resources hopes to pocket $US8 million ($A9.2) for the sale of its Nuurst coal project in Mongolia.

Both companies are likely to leave the coal space if their deals close.

Attila stands to get almost three times its market capitalisation [$A24 million], twice its project’s enterprise value [$A33.8 million], if Kodiak’s sale to US-based buyer Magni Resources goes ahead early in 2015.

The company will then be debt free and will have significant cash reserves in what is a buyers’ market for resource projects.

Kodiak is the company’s only project. It covers 11,700 acres in central Alabama and contains an existing underground mine and significant infrastructure.

There is a total resource of 126.6 million tonnes at Kodiak, and bulk sampling as part of the definitive feasibility study was undertaken mid-year with promising results.

Attila received a confidential and unsolicited approach from Magni soon after, and the pair have conducted due diligence since.

Assuming Attila shareholders approve the sale, and if Magnis can secure financing, the Australian junior hopes to close the deal next year, also regaining $A810,000 in bonds lodged over the project in the process.

Attila will be under no shop/no talk restrictions until March 31 next year but, in the event of a third party making a superior offer, Magni has the right to secure major shareholder Kingslane’s 11.9% interest in Attila by matching the better price.

“The strong premium offered by Magni, combined with the extensive due diligence process undertaken by the group, provides strong third party validation of the quality of the Kodiak project and its ability to generate significant cash flow over the initial life of mine,” Attila director Evan Cranston said.

“While the transaction remains conditional on financing being secured, the pedigree of the executives at Magni Resources and their relationships provides confidence that this condition will be met.

"The team behind Magni Resources are US mining experts, having constructed and operated a number of coal and natural resource mines in the US in the past.”

Magni is a metals and mining company formed for the purpose of acquiring, developing and mining underground natural resources, and plans to use Kodiak as its cornerstone asset.

The company is headed up by mining veterans Kevin Loughrey and Donald Brown.

“The acquisition of the Kodiak mine is a significant first step in our strategy and provides us with a foothold into the attractive Cahaba metallurgical coal basin,” Loughrey said.

Magni’s management team has more than 200 years of collective metals and mining experience including expertise in mine development, mergers and acquisitions and raising funds in capital markets and Loughrey said that experience would be used to secure the deal finance.

Loughrey was most recently executive chairman of Thompson Creek Metals, which raised more than $2 billion in debt and equity financing and developed the $1.5 billion Mount Milligan copper and gold mine, so there are reasons to be optimistic this is one deal that won’t simply flicker out.

Magni has informed Attila that it has a reasonable basis for believing that it will be able to secure the financing within 60 business days of executing the final agreement.

Following tax payments of up to 39% of any capital gains, Attila says it will still retain a significant cash balance and it intends to return some funds to shareholders.

Elsewhere, Modun has signed a conditional agreement for the sale of its Nuurst thermal coal deposit.

The junior has been looking at the best way to extract value from Nuurst since early this year, and has seen a degree of interest for development, joint venture or a sale since that time.

It has just signed a highly conditional agreement with a Mongolian-based company for $US1 million in cash and $US7 million in deferred royalties set at $0.50 per tonne for the first 14 million tonnes of coal extracted and sold.

The deal terms are non-binding until the prospective purchaser pays a $US100,000 exclusivity fee next week. That will allow 90 days for due diligence.

The fee can only be refunded if Modun shareholders block the deal or if due diligence uncovered any serious flaws with the licences, but will otherwise be considered part of the cash consideration.

If the deal goes through then former directors of Modun, Rick Dalton and Daniel Rohr, will be entitled to back payments from the initial US$1 million of almost $200,000.

A further commission of no more than 5% will be due to Modun’s local agent.

Modun has long talked about wanting to get out of its Mongolian coal assets, lamenting that despite the success it achieved in generating a 478Mt thermal coal resource at Nuurst the market just didn’t seem to care.

Critically, Modun has been unable to secure finalisation of an off-take agreement with the Mongolian Government.

It is considering getting out of resources and into IT.