Corsa Coal announces filing of technical report for the Kopper Glo Project in connection with the Kopper Glo Transaction

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TORONTO, July 25, 2013 /CNW/ - Corsa Coal Corp. (TSXV: CSO) ("Corsa") announces that, in connection with its proposed acquisition of Quintana Kopper Glo Investment, LLC ("Kopper Glo") and related private placements (the "Transaction"), a technical report in respect of the Kopper Glo-controlled Kopper Glo Project, prepared in accordance with the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has been made available on www.sedar.com under Corsa's profile. This technical report is entitled "Technical Report on the Coal Reserve and Coal Resource Controlled by Kopper Glo Fuel, Inc., Tennessee, USA - Prepared in accordance with National Instrument 43-101 Standards for Disclosure of Mineral Projects Effective April 1, 2013" (the "KG Technical Report").  A description of the Transaction, including the various conditions to completion, and a summary of the KG Technical Report are included in Corsa's Filing Statement dated July 24, 2013, also available on www.sedar.com under Corsa's profile.

Kopper Glo Project

The bituminous coal deposits comprising the Kopper Glo Project are located on properties controlled by Kopper Glo in Campbell and Claiborne Counties, in northeastern Tennessee, and are part of the Appalachian region of the eastern United States.

Coal Resources

Kopper Glo controls a total of 80.6 million tons of measured and indicated in-situ coal resource tons and 1.4 million inferred in-situ coal resource tons. Of the total measured and indicated tons, 52% are measured and 48% are indicated. Coal resource estimates have been prepared using industry-standard methodology to provide reasonable prospects for economic extraction. The measured and indicated coal resource contains low sulfur, low ash, and high British thermal unit per pound (Btu/lb.) bituminous coal. Coal resources are reported inclusive of the coal reserves and coal resources that are not coal reserves do not have demonstrated economic viability.

Coal Reserves

Kopper Glo controls 22.38 million moist, recoverable proven and probable coal reserve tons, of which 61% is considered proven and 39% is considered probable, after the application of all mining factors. Of the total coal reserve, 1.93 million moist, recoverable tons are surface-mineable, 19.47 million moist, recoverable tons are underground-mineable, and 0.98 million moist recoverable tons are highwall-mineable. Of the total coal reserve, 4.27 million tons are permitted for mining by appropriate federal regulatory authorities with the responsibility for oversight of mining operations in the United States and in Tennessee.

Coal reserve estimates were derived from the defined coal resource considering relevant processing, economic (including independent estimates of capital, revenue, and cost), marketing, legal, environmental, socioeconomic, and regulatory factors and are presented on a moist (6.0 percent for washed product and 4.5 percent for raw product), recoverable basis, and represent the saleable product from the Kopper Glo Project; have been prepared using industry-standard methodology to provide reasonable assurance that the coal reserves are economic and recoverable at the time of evaluation; and are the economically viable coal tonnage Kopper Glo currently plans to mine based on its business plan of April 1, 2013.

Projected Cash Flows

Projected consolidated net cash flow, excluding debt service, from operations for the Kopper Glo Project from 2013 through 2041 totals $380.7 million over the projected life of the Kopper Glo Project. Projected capital expenditures total $27.2 million during the first five years and $135.2 million over the projected life of the Kopper Glo Project. On an un-levered basis, the net present value of the projected project cash flows amounts to $126.6 million at a 9.31% discount rate. The pre-feasibility financial model prepared for the KG Technical Report was developed to test the economic viability of each coal resource area. The net present value estimate was made for purposes of confirming the economics for classification of coal reserves and not for purposes of valuing Kopper Glo or its assets.

The above information relating to the Kopper Glo Project is qualified in its entirety by the full text of the KG Technical Report.

Qualified Person

The mineral reserve and resource estimates have been prepared under the supervision of, and the technical information in this press release was verified and approved by Justin S. Douthat, a qualified person, as such term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Douthat is independent of Corsa.

Information about Corsa

Corsa's primary business is the mining, processing and selling of low volatile metallurgical coal, as well as actively exploring, acquiring and developing resource properties consistent with its coal business.

Forward-Looking Statements

Certain information set forth in this press release contains "forward-looking statements" and "forward-looking information" under applicable securities laws.  Such information includes projected cash flows, expenditures and resource and reserve estimates, and is based on current expectations, assumptions and beliefs, which may prove to be incorrect.  These statements are not guarantees of actual production or cash flows, or that expenditures will not exceed those projected.  Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause timing to be different, potentially materially, than expressed or implied by such forward-looking statements.  These risks and uncertainties include, but are not limited to the risks described in Corsa's Filing Statement dated July 24, 2013. There can be no assurance that forward-looking statements will prove to be accurate, as actual timing could differ materially from those anticipated in such statements.  The reader is cautioned not to place undue reliance on forward-looking statements. Corsa does not undertake to update such forward looking statements, unless required to do so by law.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.  Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

SOURCE Corsa Coal Corp.

Corsa Coal Corp.:
Donald K. Charter
President and Chief Executive Officer
416-214-9800
communication@corsacapital.com
www.corsacoal.com