April 30, 2013 /CNW/ -
Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL, TSX: CPT) is pleased to present its quarterly report for the three months ending
31 March 2013.
19 April 2013 Coalspur announced it concluded an arrangement to fund
the majority of Stage 1 of its Vista Coal Project ("
Vista"). Highlights include:
EIG Global Energy Partners ("
EIG") to provide a senior secured debt facility of up to
Facility"). The Facility is expected to fund the majority of development capital
for Stage 1 of Vista, which is estimated to be
EIG increased the amount of the Facility to up to
US$350 million, an
US$50 million from the previous announcement on
The arrangement enables Coalspur to retain all off-take and marketing
rights which allows it to preserve strategic flexibility and extract
greater value for Coalspur shareholders in the future. Coalspur will
also retain 100% ownership of Vista as part of this transaction.
Access to the Facility maintains the development schedule of Vista with
anticipated construction in mid-2013 and first production in 2015.
Highland Park continued to show support of the Company by allowing
million of the
C$40 million debt currently outstanding to remain in the
Company as subordinated debt.
Colin Gilligan was appointed to Chief Operating Officer ("
COO") of Coalspur effective
1 April 2013.
Mr. Gilligan will be responsible for the development of all stages of
Vista as well as technical and operating aspects of the mine.
Mr. Gilligan brings 24 years of mining experience to Coalspur, having
been involved in the development and operation of major operations
Prior to this appointment, Mr. Gilligan served as the COO of Mitsui Coal
holdings Pty Ltd. where he oversaw annual production of 12 million
equity tonnes of coal, from eleven joint venture operations.
The Company announced the appointment of Mr.
Richard Tremblay as Vice
President, Operations, effective
18 March 2013, to lead Vista into
commissioning and production.
Mr. Tremblay will be responsible for preparing Vista for commissioning
and running the mine once it is operational. Mr. Tremblay will oversee
the safety and effectiveness of the operations, all environmental and
health matters, production control and staff functions at Vista.
Mr. Tremblay has 22 years of experience in the industry and joined
Coalspur from Teck Coal where he held a number of senior roles,
including that of General Manager of their Fording River Coal
Coalspur announced that it has reached a definitive agreement (the "
Agreement") with CN Rail ("
CN") for the transportation of thermal coal from Vista to Ridley Terminals
Inc., as well as the final agreement with CN regarding the construction
of the rail siding to serve the mine.
The key elements of the Agreement are consistent with the terms
announced by Coalspur on
14 December 2012 and include transportation of
up to 12 million tonnes per annum of coal; and defined rates with
agreed escalation and fuel surcharge calculations.
As a result of signing the Agreement, total FOB costs for Vista are
projected to be
C$56.98 per tonne in the first five years of
C$59.55 per tonne in the first ten years of production and
C$66.40 per tonne over the life of the mine.
Coalspur and CN also signed an agreement which will govern the
construction of a 6.5km long rail siding providing CN access to
Coalspur's loading site. Subject to regulatory approval rail
construction activity is expected to begin in Q3, 2013 and be completed
in early 2015.
The Company announced that its largest shareholder, the Highland Park
Highland Park"), as well as other smaller optionholders, had exercised their options
to purchase additional ordinary shares in the company.
Highland Park exercised 12,724,669 options at an exercise price of
A$0.70 per option, and now owns 153,840,202 ordinary shares which
represents approximately 24.3% of the ordinary shares currently
outstanding in the Company.
Holders of a further 669,333 options with an exercise price of
per option also exercised their options to acquire further shares.
Total funds raised from the exercise of options were
funds were received as of
December 31, 2012 and the shares were issued
The Company is currently focusing on the efforts necessary to finalize
the Facility and commence construction on Vista. Activities in the
coming months are expected to include:
Continued pursuit of regulatory approvals which are required to commence
forest clearing, site grading, water management structures and other
Satisfy various conditions of the Facility, including holding a meeting
of Shareholders to vote on arrangements;
Finalize the contracting and procurement strategy for Vista Stage 1 to
enable construction to commence as planned;
Award contracts for the civil earthworks and mine pre-development work;
Discussions to secure additional investment / funding and off-take
arrangements for Vista; and
Continued discussions with mining contractors.
The full version of this news release is available on the Company's
and SEDAR at
For further information regarding the Vista Coal Project and Vista
Extension, including a description of Coalspur's quality assurance
program, quality control measures, the geology, samples collected and
testing procedures in respect of the projects, please refer to the
technical report titled "Coalspur Mines Limited: Updated Resource
Estimate for the Vista Coal Project" dated
September 12, 2012. For
further information regarding the Vista South Coal Project, including a
description of Coalspur's quality assurance program, quality control
measures, the geology, samples collected and testing procedures in
respect of the project, please refer to the technical report titled
"Resource Estimate for the Vista South Coal Property" dated
2012. The technical reports for the Vista Coal Project, the Vista South
Coal Project, and Vista Extension are compliant with National
Instrument 43-101 - "Standards of Disclosure for Mineral Projects" ("
NI 43-101") and are available for review on SEDAR at
Competent Person / Qualified Person Statements
The information in this report that relates to Coal Resources on the
Vista Coal Project and Vista Extension, mining engineering, Recoverable
Coal Reserves, capital costs, mining operating costs, and economic
financial analysis, process capital costs and associated
infrastructure, and all other scientific and technical information in
this Report is based on information compiled by Mr.
David Leslie, who
is a Member of the Association of Professional Engineers and
Alberta. Mr. Leslie is a full-time employee of
Coalspur. Mr. Leslie has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and
to the activity he is undertaking to qualify as a "Competent Person" as
defined in the 2004 Edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves' ("
JORC Code"), and a "Qualified Person" under NI 43-101. Mr. Leslie has approved
and consents to the inclusion of such information in this report in the
form and context in which it appears.
The information in this report that relates to coal quality and process
yield estimates to derive Marketable Coal Reserves is based on
information compiled by Mr.
Gordon Mudryk, who is a Member of the
Association of Professional Engineers, Geologists and Geophysicists of
Alberta. Mr. Mudryk is a full-time employee of Coalspur. Mr. Mudryk has
sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity he is
undertaking to qualify as a "Competent Person" as defined in the 2004
Edition of the JORC Code, and a "Qualified Person" under NI 43-101. Mr.
Mudryk has approved and consents to the inclusion of such information
in this report in the form and context in which it appears.
The information in this report that relates to Coal Resources on Vista
South is based on information compiled by Mr.
John Innis, who is a
Member of the Association of Professional Engineers, Geologists and
Alberta. Mr. Innis is a full-time employee of
Coalspur. Mr. Innis has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to
the activity he is undertaking to qualify as a "Competent Person" as
defined in the 2004 Edition of the JORC Code, and a "Qualified Person"
under NI 43-101. Mr. Innis has approved and consents to the inclusion
of such information in this report in the form and context in which it
Forward Looking Statements
This report contains forward-looking statements concerning Coalspur,
including statements regarding Coalspur's plans for its mineral
projects, development plans and timing, development and operating
costs, production, regulatory approvals, exploration and development
activities, and other matters. These statements relate to analyses and
other information that is based on forecasts of future results,
estimates of amounts not yet determinable and assumptions of
management. Actual results could differ materially from the
conclusions, forecasts and projections contained in these
Statements concerning Mineral Resource Estimates may also be deemed to
constitute "forward-looking statements" to the extent that they involve
estimates of the mineralization that will be encountered if a given
property is developed. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or performance
(often, but not always, using words or phrases such as "expects", "is
expected", "anticipates", "plans", "projects", "estimates", "assumes",
"intends", "strategy", "goals", "objectives", "potential" or variations
thereof or stating that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved, or
the negative of any of these terms and similar expressions) are not
statements of historical fact and may be forward-looking statements.
Forward-looking statements are subject to a variety of known and
unknown risks, uncertainties and other factors that could cause actual
events or results to materially differ from those reflected in the
forward-looking statements, including those referred to in the
Company's Annual Information under the heading "Description of the
Business - Risk Factors", and elsewhere.
Coalspur's forward-looking statements are based on the beliefs,
expectations and opinions of management as of the date hereof and which
Coalspur believes are reasonable in the circumstances, but no assurance
can be given that these expectations will prove to be correct. In
making the forward-looking statements the Company has applied several
material assumptions which may prove to be incorrect, including, but
not limited to: (1) that all required third party approvals will be
obtained for the development, construction and production of its
properties; (2) that additional financing will be available on
reasonable terms; (3) there being no significant disruptions affecting
operations, whether due to labour disruptions, supply disruptions,
power disruptions, damage to equipment or otherwise; (4) permitting,
development and expansion proceeding on a basis consistent with the
Company's current expectations; (5) currency exchange rates being
approximately consistent with current levels; (6) certain price
assumptions for coal; (7) production forecasts meeting expectations;
(8) the accuracy of the Company's current mineral resource and reserve
estimates; (9) labour and materials costs increasing on a basis
consistent with the Company's current expectations; and (10)
assumptions made and judgments used in engineering and geological
Coalspur disclaims any intention or obligation to update or revise
forward-looking statements if circumstances or management's beliefs,
expectations or opinions should change, except as required by law. For
the reasons set forth above, undue reliance should not be placed on