Coalspur Mines Limited (ASX:CPL) Announces Strategic And Institutional Placements To Raise A$80M
Perth, Oct 1, 2010 AEST (ABN Newswire) - Coalspur Mines Limited (
ASX:CPL) (PINK:CSPZF) are pleased to advise that BMO Capital Markets and JP Morgan are acting as Joint Lead Agents and Joint Bookrunners for a Share Placement to North American and European based strategic and institutional investors.
The Share Placement will raise A$44.0 million (before costs) by the issue of 55 million Ordinary Shares at A$0.80 each. The Share Placement is being made to strategic and institutional investors.
A further A$36.0 million (before costs) will also be raised from a Private Placement of convertible notes which, subject to shareholder approval, will convert into 45 million Ordinary Shares at A$0.80 each. The Private Placement is being made to a number of current strategic and institutional shareholders, with the largest participant being the Highland Park Group.
Proceeds from the placements will be used to fund the acquisition of the New Coal Leases (see ASX release dated 16 June 2010) and to enable further accelerated development of the Company's world class Vista Coal Project.
Commenting on the transaction, Mr Gene Wusaty, Managing Director and Chief Executive Officer said, "The scale of the placements and the high quality of the strategic and institutional investors is further testament to the Company's Vista Coal Project.
Having the support of BMO Capital Markets and JP Morgan as the Company continues to develop the Vista Coal Project and progress its proposed listing on TSX will be a huge benefit going forward."
"Using the funds from the placements, rather than the previously announced debt facility, to accelerate the acquisition of the New Coal Leases will place the Company in a stronger financial position to rapidly develop the Vista Coal Project. By the end of the December 2010 quarter, we will have completed the Pre-feasibility Study while having retained all of the off-take and marketing rights to our coal and will still be debt free, which is a significant achievement for a Company of our size and a project of this scale."
The placements will settle by:
- Share Placement - the issue of 55 million ordinary shares at A$0.80 each to raise A$44 million; and
- Private Placement - the issue of convertible notes with a total face value of A$36 million, which will automatically convert at A$0.80 each into 45 million ordinary shares upon subsequent shareholder approval.
The Company will then accelerate the exercise of its right to acquire the New Coal Leases, with settlement of the acquisition of the New Coal Leases to occur within 15 business days. Further details regarding the transaction will be included in a Notice of General Meeting to be sent to shareholders shortly. Settlement of the placements is expected to occur by mid-October 2010.
This ASX release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
J.P. Morgan Securities Ltd., which is authorised and regulated in the United Kingdom by the Financial Services Authority, and BMO Capital Markets are acting exclusively for the Company and no-one else in connection with the Share Placement and will not regard any other person (whether or not a recipient of this announcement) as a client in relation to the Share Placement and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients nor for giving advice in relation to the Share Placement or any other transaction or arrangements referred to in this announcement.
Each of J.P. Morgan Securities Ltd., BMO Capital Markets and their respective affiliates accepts no responsibility whatsoever for the contents of this announcement, including its accuracy, completeness or verification in connection with the Company, the Share Placement or the Private Placement. J.P. Morgan Securities Ltd., BMO Capital Markets and their respective affiliates accordingly disclaim all and any liability whether arising in tort, contract or otherwise which they might otherwise have in respect of this announcement or its contents otherwise arising in connection herewith.
For the complete Coalspur announcement including figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63870-ASX-CPL-507785.pdf
About Coalspur Mines Limited
Coalspur Mines Limited (ASX:CPL) (TSE:CPT) is a coal development company with approximately 55,000 hectares of coal leases located within the Hinton region of Alberta, Canada. Coalspur's flagship project is Vista, which covers approximately 10,000 hectares and provides a large scale, surface mineable, thermal coal development. Vista is located adjacent to CN Rail's main line, which is suitable for the transport of coal to deepwater ports on Canada's west coast. Coalspur has secured a port allocation agreement with Ridley Terminals Inc., which is essential to the logistics supply chain necessary to export coal from Vista to the growing demand from the Asia Pacific countries.
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