Coalspur Mines Limited (ASX:CPL) To Accelerate New Coal Leases Settlement
Perth, Oct 13, 2010 AEST (ABN Newswire) - Coalspur Mines Limited (
ASX:CPL) (PINK:CSPZF) is pleased to advise that settlement of its acquisition of the New Coal Leases (see ASX release dated 16 June 2010) will occur ahead of schedule, following the Company exercising its option early to acquire the New Coal Leases from a private Canadian corporation in Alberta, Canada.
The New Coal Leases are contiguous with the existing Vista Coal Project ("Project") and contain a Coal Resource of 438 million tonnes with an associated Mine Permit. The Company's combined Coal Resource now totals over 900 million tonnes of low sulphur, high volatile bituminous, export quality thermal coal with over 810 million tonnes (90%) of the resource in the Measured and Indicated category.
The acquisition will create the potential to develop one of the largest export thermal coal mines in North America with 20km of continuous gently dipping strike length and access to an underutilised port and adjacent rail infrastructure.
The Pre-Feasibility Study ("PFS") currently being conducted on the expanded Project is on schedule. Results are expected in the coming weeks and are likely to confirm the potential for a substantial mining development as well as significant increases in production rates and mine life when compared to the Scoping Study previously completed in February 2010.
Commenting on the settlement of the acquisition, Mr Gene Wusaty, Managing Director and Chief Executive Officer said, "We are extremely pleased to be able to bring forward settlement of the acquisition by a number of weeks. This will allow us to further accelerate our active schedule of exploration and development activities, and importantly complete a number of critical milestones before year end, allowing us to start work on a Feasibility Study in early 2011."
The commercial terms of the agreement provide for a final payment of C$83.5 million to be made within 15 business days following the Company providing written notice to the vendor of the exercise of its option, upon which Coalspur will secure 100% of the New Coal Leases.
The acquisition will be financed from existing cash reserves and funds from the recently announced strategic and institutional placements to raise C$80 million before costs.
The total acquisition cost represents a transaction multiple of C$0.205 (approximately A$0.205) per tonne of Coal Resource.
For the complete Coalspur announcement including the PFS on Expanded Project, please view the following link:
http://www.abnnewswire.net/media/en/docs/63940-ASX-CPL-509226.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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