Coalspur Mines Ltd. To raise C$55.5M from North American and strategic investors
13.04.2011 | CNW
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIESCALGARY, April 13 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL, TSX: CPT) has entered into an agreement with a syndicate of agents led by Haywood Securities Inc., BMO Capital Markets and RBC Capital Markets (the "Agents") under which the Agents have agreed to place up to 24,000,000 ordinary shares (the "Ordinary Shares") of the Company at an issue price of C$1.85 per Ordinary Share for gross proceeds to the Company of up to C$44.4 million ("Public Offering").
The Company also intends to raise a further C$11.1 million (before costs) from a private placement of 6,000,000 ordinary shares at C$1.85 each ("Private Placement"). The Private Placement is being made to the Highland Park Group, a strategic shareholder of the Company.
Commenting on the capital raising, Mr Gene Wusaty, Managing Director and CEO said, "We recently announced the commencement of our Bankable Feasibility Study at Vista, which is the key final phase before construction commences. The funding allows us to bring forward a number of major activities that have the potential to greatly enhance the production profile and value of the Vista project, including additional development drilling at Vista and an accelerated drilling program at Vista South."
"We are very excited to have Haywood, BMO and RBC all taking lead roles in our first placement following our TSX listing late last year. Combined with the emphasis on expanding our retail investor base as part of the Public Offering, the Company is in an excellent position to further enhance our profile in the North American investment community."
The issue price of C$1.85 per Ordinary Share equates to an issue price of approximately A$1.84 per Ordinary Share for gross proceeds to the Company from the Public Offering and the Private Placement of approximately A$55.1 million.
The Public Offering will be made primarily to North American institutional and retail investors and the Company has filed a preliminary short form prospectus with the applicable securities regulatory authorities in regards to the Public Offering.
Subject to all customary conditions, including the receipt of all necessary regulatory approvals, closing of the Public Offering is expected to occur on or about May 3, 2011 and closing of the Private Placement is expected to occur in early June 2011, following shareholder approval.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or in accordance with an applicable exemption from the registration requirements.
About Coalspur
Coalspur Mines Ltd ("Coalspur" or "Company") is a coal exploration and development company with over 32,000 hectares of coal exploration leases located within the Hinton region of Alberta, Canada. Coalspur\'s flagship coal project is the Vista Coal Project which has the potential to be one of the largest export thermal coal mines in North America.
The Vista Coal Project covers approximately 8,700 hectares and contains over 20km of continuous gently dipping strike length and a Measured and Indicated Coal Resource base of over 800 million tonnes of low sulphur, high volatile bituminous, export quality thermal coal. The Company is currently undertaking a Bankable Feasibility Study on the Vista Coal Project, following a Pre-Feasibility Study ("PFS") completed in December 2010 that defined an initial marketable reserve of over 260 million tonnes on the Vista Coal Project which makes it one of the largest undeveloped export orientated thermal coal projects in North America.
__________________________________________________________________
|JORC / NI 43-101 Coal Reserves |
|__________________________________________________________________|
| |Recoverable Coal Reserve| Marketable Coal Reserve|
| |________________________|________________________|
| |Proven|Probable|Proven &|Proven|Probable|Proven &|
| | | |Probable| | |Probable|
| |______|________|________|______|________|________|
| | (Mt)| (Mt)| (Mt)| (Mt)| (Mt)| (Mt)|
|________________|______|________|________|______|________|________|
|Export Product | 349.2| 79.5| 428.7| 185.9| 42.7| 228.7|
|________________|______|________|________|______|________|________|
|Domestic Product| 66.2| 26.8| 93.0| 22.5| 8.9| 31.4|
|________________|______|________|________|______|________|________|
|Coalspur Total | 415.4| 106.3| 521.7| 208.4| 51.6| 260.1|
|Reserves | | | | | | |
|________________|______|________|________|______|________|________|
The PFS defined a 31 year mine life producing approximately 9.0 million tonnes per annum (\'Mtpa\') of saleable coal from the processing of approximately 18.0Mtpa of run of mine (\'ROM\') coal. Initial development costs for the Vista Coal Project are expected to be ~C$580 million. The Vista Coal Project is able to leverage off already established first world infrastructure, with CN rail facilities located adjacent to the Project that are substantially underutilised and provide a rail track suitable for the transport of coal to deepwater ports with excess capacity that already service the growing demand from the Asian Pacific Rim countries, including China, Japan and Korea.
___________________________________________________________________
|JORC / NI 43-101 Coal Resources |
|___________________________________________________________________|
| |Measured|Indicated|Measured & Indicated|Inferred|
|__________________|________|_________|____________________|________|
| | (Mt)| (Mt)| (Mt)| (Mt)|
|__________________|________|_________|____________________|________|
|Vista Coal Project| 588.9| 331.6| 920.5| 282.3|
|__________________|________|_________|____________________|________|
|Vista South Coal | 51.5| 41.9| 93.3| 75.0|
|Project | | | | |
|__________________|________|_________|____________________|________|
|Coalspur Total | 640.4| 373.5| 1,013.8| 357.3|
|Resource | | | | |
|__________________|________|_________|____________________|________|
In addition the Company holds leases directly south of the Vista Coal Project named Vista South. The Vista South Project area covers over 23,000 hectares extends for over 25km on each of the northern and southern limb of the Entrance Syncline which the company believes has the potential to host a significant coal resource. First phase drilling in the area together with existing historical information has allowed the Company to define an initial Measured and Indicated Coal Resource of 93 million tonnes. Further drilling and potential resource upgrades are scheduled during 2011 on Vista South.
Coalspur has offices in Calgary and Hinton in Canada as well as in Australia. The Company\'s goal is to develop a major new thermal export coal region in Alberta to meet growing energy demands worldwide and in particular of the insatiable Asia Pacific market. The Company is dual listed on the Toronto Stock Exchange (\'TSX\') under the symbol \'CPT\' and on the Australian Securities Exchange (\'ASX\') under the symbol \'CPL\'.
Regulatory Disclosures
For further information regarding the Vista Coal Project and Vista South Project, 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 on the Vista Coal Project titled \'Vista Coal Project Prefeasibility Study\' dated January 25, 2011 and the technical report on the Vista South Project titled \'Resource Estimate for the Vista South Coal Property\' dated December 15, 2010, which are compliant with National Instrument 43-101 - \'Standards of Disclosure for Mineral Projects\' (\'NI 43-101\') and are available for review on SEDAR at www.sedar.com.
Competent Person / Qualified Person Statements
The information in this news release that relates to Coal Resources is based on information compiled by Mr. Robert J. Morris, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Morris is a full-time employee of Moose Mountain Technical Services, who are consultants to Coalspur. Mr. Morris 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. Morris consents to the inclusion of such information in this news release in the form and context in which it appears.
The information in this news release that relates to mining engineering and Recoverable Coal Reserves is based on information compiled by Mr. Robert Fong, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Fong is an associate of Moose Mountain Technical Services, who are consultants to Coalspur. Mr. Fong 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. Fong consents to the inclusion of such information in this news release in the form and context in which it appears.
All other scientific and technical information in this news release is based on information compiled by Mr. Eugene Wusaty, who is a Member of the Association of Professional Engineers and Geoscientists of Alberta. Mr. Wusaty is a full-time employee of Coalspur. Mr. Wusaty has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the JORC Code, and a "Qualified Person" under NI 43-101. Mr. Wusaty consents to the inclusion of such information in this news release in the form and context in which it appears.
Forward Looking Statements
This news release contains \'forward-looking information\' that is based on the Company\'s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Public Offering and Private Placement, the Company\'s business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, scoping, pre-feasibility and other studies, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as \'expect\', \'potential\', \'outlook\', \'anticipate\', \'project\', \'target\', \'likely\', \'believe\', \'estimate\', \'intend\', \'may\', \'would\', \'could\', \'should\', \'scheduled\', \'will\', \'plan\', \'forecast\', "evolve" and similar expressions. Persons reading this news release are cautioned that such statements are only predictions, and that the Company\'s actual future results or performance may be materially different.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company\'s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in the Company\'s Annual Information Form. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information.
The Company disclaims any intent or obligation to update or revise any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.
For further information:
Gene Wusaty
Managing Director and CEO
Telephone: +1 403 975 7901
http://www.coalspur.com