Coalspur Mines Limited (ASX:CPL) Completed Strategic And Institutional Placements
Perth, Oct 15, 2010 AEST (ABN Newswire) - Coalspur Mines Limited (
ASX:CPL) (PINK:CSPZF) is pleased to advise that it has now completed the Company's previously announced placements to strategic and institutional investors to raise A$80 million before costs.
Commenting on the capital raising, Mr Gene Wusaty, Managing Director and Chief Executive Officer said, "The Company is now fully funded for the completion of a Bankable Feasibility Study ("BFS"). The recent support of BMO Capital Markets and JP Morgan to the Company at this point, ahead of our proposed TSX listing, has been of great benefit as we work to develop the Company's profile in the Northern Hemisphere."
"It is already clear that the Company's Vista Coal Project ("Project") has the potential to become one of the largest export thermal coal mines in North America. We are looking forward to finalising the results of our current Pre-feasibility Study ("PFS") on the expanded Project over the coming weeks."
BMO Capital Markets and JP Morgan acted as Joint Lead Agents and Joint Bookrunners for a Share Placement of 55 million ordinary shares at A$0.80 each to raise proceeds of A$44 million. The Share Placement was made to North American and European based strategic and institutional investors.
The Company also completed a Private Placement of convertible notes, which will automatically convert at A$0.80 each into 45 million ordinary shares upon subsequent shareholder approval, to raise proceeds of A$36 million. The Private Placement was made to a number of current strategic and institutional shareholders, with the largest participant being the Highland Park Group.
The Company has a number of activities scheduled over the coming months, including:
- Progress the application to list on TSX and increase the Company's profile with the Northern Hemisphere investment community;
- Initial coal resource estimate for the Vista South Project following the recently completed drilling;
- Completion of the PFS on the expanded Project;
- Commencement of BFS on the expanded Project;
- Results from development drilling and bulk sampling on the expanded Project; and
- Progressing infrastructure analysis and access.
For the complete Coalspur announcement including Development Timetable, please view the following link:
http://www.abnnewswire.net/media/en/docs/63952-ASX-CPL-509657.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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