Close and First Drawdown of EIG Facility
Vancouver, July 16, 2013 AEST (ABN Newswire) - Coalspur Mines Limited (
ASX:CPL) (TSE:CPT) is pleased to advise that it has achieved financial close and first drawdown of US$37 million in regards to the senior debt facility secured from EIG Global Energy Partners ("EIG") for the development of the Company's 100% owned Vista coal project ("Vista") located in Alberta, Canada.
Coalspur's President and CEO, Gill Winckler said "We are very pleased with the EIG facility and the confidence it demonstrates in Vista. Securing a facility that covers up to 75% of development capital for Vista is a major achievement and a key milestone for Coalspur. The facility allows us to now embark upon development of Vista with production on track for the first half of 2015".
The Company is working towards finalising regulatory approval for Vista which will allow for the commencement of construction for the project in September 2013, as previously announced. Upon securing regulatory approval, Coalspur expects to make further draw-downs of the EIG senior debt facility.
Coalspur's flagship coal project is the Vista coal project ("Vista") which has the potential to be the largest export thermal coal mine in Canada.
Vista covers approximately 10,000 hectares and provides a large scale, surface mineable, thermal coal project. Vista has the advantage of leveraging off established first world infrastructure with CN Rail's main line, located adjacent to Vista, which is substantially underutilised and provides a rail line 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 Rim countries, including China, Japan and Korea.
---------------------------------------------------------------JORC / NI 43-101 Coal Resources--------------------------------------------------------------- Measured Indicated Measured Inferred (Mt) (Mt) & Indicated(Mt) (Mt)---------------------------------------------------------------Vista Coal Project 686.0 369.9 1,055.9 460.9Vista South Coal Project 210.6 259.9 470.5 604.5Vista Extension 6.5 167.2 173.7 969.3---------------------------------------------------------------Coalspur Total Resources 903.1 797.0 1,700.1 2,034.7---------------------------------------------------------------
Note: Vista Extension Coal Resource estimates effective May 8, 2012, Vista Coal Project Coal Resource estimates effective May 8, 2012 and Vista South Coal Project Coal Resource estimates effective May 22, 2010.
Vista is designed to reach a maximum clean coal production rate of 12.0 Mtpa, has a long mine life of 29 years and will be developed over two phases. Phase 1 envisages 6.0 Mtpa of clean coal production capacity at a capital cost of C$449 million. Phase 2 will provide for an additional 6.0 Mtpa clean coal production capacity for a total of 12.0 Mtpa. Construction on Phase 1 is expected to begin in 2013 with first production in mid 2015. Marketable Coal Reserves on Vista are 313 Mt from a Recoverable Coal Reserve of approximately 566 Mt.
JORC / NI 43-101 Compliant Coal Reserves----------------------------------------------------Coal Seam Recoverable Coal Reserve Proven | Probable | Proven & (Mt) (Mt) Probable (Mt) ----------------------------------------------------Val d'Or and McPherson 429.3 45.9 475.2 McLeod 74.4 16.0 90.3 ----------------------------------------------------Coalspur Total Reserves 503.7 61.8 565.5 ----------------------------------------------------JORC / NI 43-101 Compliant Coal Reserves----------------------------------------------------Coal Seam Marketable Coal Reserve Proven | Probable | Proven & (Mt) (Mt) Probable (Mt)----------------------------------------------------Val d'Or and McPherson 248.5 26.5 275.0 McLeod 31.5 6.9 38.4----------------------------------------------------Coalspur Total Reserves 280.0 33.3 313.4----------------------------------------------------
Note: Coal Reserve estimates effective December 13, 2011
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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