/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO
U.S. NEWS AGENCIES/
CALGARY, April 13 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL, TSX: CPT) has entered into an agreement with a syndicate of agents led by Haywood
Securities Inc., BMO Capital Markets and RBC Capital Markets (the "Agents") under which the Agents have agreed to place up to 24,000,000 ordinary
shares (the "Ordinary Shares") of the Company at an issue price of C$1.85 per Ordinary Share for gross proceeds to the Company of up to C$44.4
million ("Public Offering").
The Company also intends to raise a further C$11.1 million (before costs) from a private placement of 6,000,000 ordinary
shares at C$1.85 each ("Private Placement"). The Private Placement is being made to the Highland Park Group, a
strategic shareholder of the Company.
Commenting on the capital raising, Mr Gene Wusaty, Managing Director and
CEO said, "We recently announced the commencement of our Bankable
Feasibility Study at Vista, which is the key final phase before
construction commences. The funding allows us to bring forward a number
of major activities that have the potential to greatly enhance the
production profile and value of the Vista project, including additional
development drilling at Vista and an accelerated drilling program at
"We are very excited to have Haywood, BMO and RBC all taking lead roles
in our first placement following our TSX listing late last year.
Combined with the emphasis on expanding our retail investor base as
part of the Public Offering, the Company is in an excellent position to
further enhance our profile in the North American investment
The issue price of C$1.85 per Ordinary Share equates to an issue price
of approximately A$1.84 per Ordinary Share for gross proceeds to the
Company from the Public Offering and the Private Placement of
approximately A$55.1 million.
The Public Offering will be made primarily to North American
institutional and retail investors and the Company has filed a
preliminary short form prospectus with the applicable securities
regulatory authorities in regards to the Public Offering.
Subject to all customary conditions, including the receipt of all
necessary regulatory approvals, closing of the Public Offering is
expected to occur on or about May 3, 2011 and closing of the Private
Placement is expected to occur in early June 2011, following
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful. The securities to
be offered have not been registered under the U.S. Securities Act of
1933, as amended, or any state securities laws and may not be offered
or sold in the United States absent registration or in accordance with
an applicable exemption from the registration requirements.
Coalspur Mines Ltd ("Coalspur" or "Company") is a coal exploration and
development company with over 32,000 hectares of coal exploration
leases located within the Hinton region of Alberta, Canada. Coalspur's
flagship coal project is the Vista Coal Project which has the potential
to be one of the largest export thermal coal mines in North America.
The Vista Coal Project covers approximately 8,700 hectares and contains
over 20km of continuous gently dipping strike length and a Measured and
Indicated Coal Resource base of over 800 million tonnes of low sulphur,
high volatile bituminous, export quality thermal coal. The Company is
currently undertaking a Bankable Feasibility Study on the Vista Coal
Project, following a Pre-Feasibility Study ("PFS") completed in
December 2010 that defined an initial marketable reserve of over 260
million tonnes on the Vista Coal Project which makes it one of the
largest undeveloped export orientated thermal coal projects in North
JORC / NI 43-101 Coal Reserves
Recoverable Coal Reserve
Marketable Coal Reserve
Proven & Probable
Proven & Probable
Coalspur Total Reserves
The PFS defined a 31 year mine life producing approximately 9.0 million
tonnes per annum ("Mtpa") of saleable coal from the processing of
approximately 18.0Mtpa of run of mine ("ROM") coal. Initial development
costs for the Vista Coal Project are expected to be ~C$580 million. The
Vista Coal Project is able to leverage off already established first
world infrastructure, with CN rail facilities located adjacent to the
Project that are substantially underutilised and provide a rail track
suitable for the transport of coal to deepwater ports with excess
capacity that already service the growing demand from the Asian Pacific
Rim countries, including China, Japan and Korea.
JORC / NI 43-101 Coal Resources
Measured & Indicated
Vista Coal Project
Vista South Coal Project
Coalspur Total Resource
In addition the Company holds leases directly south of the Vista Coal
Project named Vista South. The Vista South Project area covers over
23,000 hectares extends for over 25km on each of the northern and
southern limb of the Entrance Syncline which the company believes has
the potential to host a significant coal resource. First phase drilling
in the area together with existing historical information has allowed
the Company to define an initial Measured and Indicated Coal Resource
of 93 million tonnes. Further drilling and potential resource upgrades
are scheduled during 2011 on Vista South.
Coalspur has offices in Calgary and Hinton in Canada as well as in
Australia. The Company's goal is to develop a major new thermal export
coal region in Alberta to meet growing energy demands worldwide and in
particular of the insatiable Asia Pacific market. The Company is dual
listed on the Toronto Stock Exchange ("TSX") under the symbol "CPT" and
on the Australian Securities Exchange ("ASX") under the symbol "CPL".
For further information regarding the Vista Coal Project and Vista South
Project, including a description of Coalspur's quality assurance
program, quality control measures, the geology, samples collected and
testing procedures in respect of the projects, please refer to the
technical report on the Vista Coal Project titled "Vista Coal Project
Prefeasibility Study" dated January 25, 2011 and the technical report
on the Vista South Project titled "Resource Estimate for the Vista
South Coal Property" dated December 15, 2010 , which are compliant with
National Instrument 43-101 - "Standards of Disclosure for Mineral
Projects" ("NI 43-101") and are available for review on SEDAR at sedar.com.
Competent Person / Qualified Person Statements
The information in this news release that relates to Coal Resources is
based on information compiled by Mr. Robert J. Morris, who is a Member
of the Association of Professional Engineers, Geologists and
Geophysicists of Alberta. Mr. Morris is a full-time employee of Moose
Mountain Technical Services, who are consultants to Coalspur. Mr.
Morris has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity he is undertaking to qualify as a "Competent Person" as
defined in the 2004 Edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code"), and a "Qualified Person" under NI 43-101. Mr. Morris consents to the
inclusion of such information in this news release in the form and
context in which it appears.
The information in this news release that relates to mining engineering
and Recoverable Coal Reserves is based on information compiled by Mr.
Robert Fong, who is a Member of the Association of Professional
Engineers, Geologists and Geophysicists of Alberta. Mr. Fong is an
associate of Moose Mountain Technical Services, who are consultants to
Coalspur. Mr. Fong has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to
the activity he is undertaking to qualify as a "Competent Person" as
defined in the 2004 Edition of the JORC Code, and a "Qualified Person"
under NI 43-101. Mr. Fong consents to the inclusion of such information
in this news release in the form and context in which it appears.
All other scientific and technical information in this news release is
based on information compiled by Mr. Eugene Wusaty, who is a Member of
the Association of Professional Engineers and Geoscientists of Alberta.
Mr. Wusaty is a full-time employee of Coalspur. Mr. Wusaty has
sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he is
undertaking to qualify as a "Competent Person" as defined in the JORC
Code, and a "Qualified Person" under NI 43-101. Mr. Wusaty consents to
the inclusion of such information in this news release in the form and
context in which it appears.
Forward Looking Statements
This news release contains 'forward-looking information' that is based
on the Company's expectations, estimates and projections as of the date
on which the statements were made. This forward-looking information
includes, among other things, statements with respect to the Public
Offering and Private Placement, the Company's business strategy, plans,
development, objectives, performance, outlook, growth, cash flow,
projections, targets and expectations, mineral reserves and resources,
scoping, pre-feasibility and other studies, results of exploration and
related expenses. Generally, this forward-looking information can be
identified by the use of forward-looking terminology such as 'expect',
'potential', 'outlook', 'anticipate', 'project', 'target', 'likely',
'believe', 'estimate', 'intend', 'may', 'would', 'could', 'should',
'scheduled', 'will', 'plan', 'forecast', "evolve" and similar
expressions. Persons reading this news release are cautioned that such
statements are only predictions, and that the Company's actual future
results or performance may be materially different.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the Company's actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking information. Forward-looking information is developed
based on assumptions about such risks, uncertainties and other factors
set out herein, including but not limited to the risk factors set out
in the Company's Annual Information Form. This list is not exhaustive
of the factors that may affect our forward-looking information. These
and other factors should be considered carefully and readers should not
place undue reliance on such forward-looking information.
The Company disclaims any intent or obligation to update or revise any
forward-looking statements whether as a result of new information,
estimates or options, future events or results or otherwise, unless
required to do so by law.
SOURCE Coalspur Mines Limited
For further information:
Managing Director and CEO
Telephone: +1 403 975 7901