Announces Changes to the Board of Directors
Vancouver, July 16, 2014 AEST (ABN Newswire) - Coalspur Mines Limited (
ASX:CPL) (TSE:CPT) is pleased to announce that it has reduced the size of its board of directors ("Board") in order to better position the Company as it undertakes the strategic review process that was announced on 23 June 2014.
As part of its strategic review process, the Company will consider all matters relating to the future funding of the Company including its current finance facilities and capital structure. Two of the Company's directors, namely Messrs. Colin Steyn (the Chairman) and Peter Breese, are affiliated with Borrowdale Park S.A. ("Borrowdale Park"), which is the Company's largest shareholder and a significant secured creditor. Borrowdale Park has a 23.98% shareholding in the Company and a current loan facility under which Coalspur has drawn a principal amount of C$33 million.
In light of these affiliations in the context of the strategic review process, it is considered to be in the best interests of both the Company and Messrs. Steyn and Breese that they resign from the Board. Accordingly, resignations have been received from each of Messrs. Steyn and Breese, effective immediately. President and CEO, Gill Winckler, said "We will miss the valuable contributions that have been made by both Colin and Peter over the past few years. However, if they had remained on the Board they would have been required to exclude themselves from all discussions and decision-making which could potentially impact Borrowdale Park's position.
Such matters are likely to constitute a significant proportion of the Company's business in the immediate future. We look forward to their ongoing support as shareholders of the Company."
The Company and the continuing members of the Board would like to thank Messrs. Steyn and Breese (and their alternate, Mr. Bill Smart) for their guidance and contribution during their time as directors of Coalspur.
Colin Steyn said "It is with regret that I am resigning from the Board of Coalspur. However I believe this decision is in the best interests of the Company as it undertakes its strategic review process. Both Peter and I, as well as Borrowdale Park, remain fully supportive of the Board and the Company and look forward to Coalspur's next phase. I would like to thank management and my fellow directors for their tireless support and contribution during my chairmanship, and wish them and the Company all the best for the future."
The Board of Coalspur now comprises three non-executive directors, all of whom have been directors of Coalspur for more than two and a half years, plus the Chief Executive Officer, Ms. Gill Winckler. Mr. Mark Rodda has been appointed as Chairman of the Board.
The Audit and the Remuneration and Nominations Committees will both comprise all three non-executive directors. The Audit Committee will be chaired by Mr. Rodda and the Remuneration and Nominations Committee will continue to be chaired by Mr. Denis Turcotte.
The role of the Special Committee will continue as described in the announcement of 23 June 2014.
The restructured Board will enable the Company to act in a decisive and streamlined manner throughout the strategic review process.
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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