VANCOUVER, Dec. 4 /CNW/ - Compliance Energy Corporation (the "Company")
announces that the Company has made the initial payment to exercise the
Purchase Option for 82,000 acres of coal rights ("Assets") located in the
Comox Coal Basin on Vancouver Island. Under the terms of the purchase
agreement the Company was required to pay $2.8 million by November 30, 2007.
Under revised terms of the agreement the Company has four payments totaling
$3.0 million over the next twelve months, including a $600,000 cash payment
that was made on November 30, 2007. The balance of $2.4 million will be due in
three payments ending on November 30, 2008 at which time the Assets will be
transferred to Compliance.
Included as part of the Purchase Option is the Raven Coal deposit upon
which the Company recently completed a positive Preliminary Assessment Report.
The report, which is filed on Sedar, concluded that a proposed mine producing
823,000 clean tonnes per year of high volatile metallurgical coal results in a
life of mine average profit of $ 30.62 per clean tonne of coal and a life of
mine average annual cash flow of $20.4 million. The estimated net present
value of the project at a constant dollar discount rate of 12% is
$105.6 million. Associated Geosciences Ltd. of Calgary ("AGL") studied two
production cases: one producing 823,000 tonnes of high volatile metallurgical
coal per year and another producing 1,440,000 tonnes of thermal coal per year.
Based on these studies AGL believes that the Raven Property warrants
additional exploration and a feasibility study to form the basis of a
production decision. The Company is actively seeking a development partner for
the Raven Coal deposit.
AGL's Preliminary Assessment was prepared by Peter Cain Ph.D., P.Eng. and
Alan Craven P.Eng. who are the Independent Qualified Persons for reporting
purposes as defined in NI 43-101Standards of Disclosure for Mineral Projects.
The Preliminary Assessment is preliminary in nature and includes inferred
coal resources that are considered too speculative geologically to have
economic considerations applied to them that would enable them to be
categorized as coal reserves and there is no certainty that the Preliminary
Assessment will be realized. Coal resources that are not coal reserves do not
have demonstrated economic viability.
Compliance Energy Corporation's shares trade on the TSX Venture Exchange
under the symbol CEC and investor information is available on the Company's
web page at www.complianceenergy.com.
On behalf of the Board of
COMPLIANCE ENERGY CORPORATION
Chief Executive Officer
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Note: This release contains forward-looking statements that involve risks
and uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to the documents, filed by the Company
on SEDAR at www.sedar.com, specifically the most recent reports which identify
important risk factors that could cause actual results to differ from those
contained in the forward-looking statements. The Company undertakes no
obligation to review or confirm analysts' expectations or estimates or to
release publicly any revisions to any forward-looking statements.
For further information:
For further information: Rob Roney, Investor Relations, at (250)
897-0437; or Rod Shier, CFO, at (604) 689-0489