TSX-V TRADING SYMBOL: CEC
VANCOUVER, Feb. 23 /CNW/ - Compliance Energy Corporation (the "Company")
is pleased to announce that Compliance Coal Corporation ("Compliance"), a
wholly owned subsidiary of the Company; I-Comox Coal Inc., a wholly owned
subsidiary of ITOCHU Corporation ("ICC"); and LG International Investments
(Canada) Ltd., a wholly owned subsidiary of LG International Corp. ("LGI")
have executed definitive Joint Venture, Management and Operation Services, and
Marketing Services Agreements for their jointly held coal and mineral
properties on Vancouver Island, thereby forming the Comox Joint Venture
("CJV"). Compliance will own 60% of the CJV while ICC and LGI will each own
The agreements provide for Compliance to be the manager and operator of
the CJV, and ICC and LGI to have exclusive global marketing rights for all
products produced by the CJV.
As a result of the completion of the definitive agreements, $7.0 million
of the $11.25 million purchase price, (see press releases dated Sept. 02, and
Dec. 01, 2008) has been released to the CJV. The final $600,000 balance of the
$11.25 million will be released directly to the Company on or before March 31,
2009. The $7.0 million will be utilized to prepare a Bankable Feasibility
Study on the Raven Coal Project including further exploration work and an
environmental assessment. An 11,000 meter drilling program is planned for
2009, with the objective of increasing the 39.0 million tonnes of measured and
indicated resources by upgrading the 59.0 million tonnes of inferred
Environmental baseline studies will commence in the first quarter of 2009
and it is expected that the Bankable Feasibility Study will be initiated in
the fourth quarter of 2009 once the results of the 2009 exploration program
are received. The CJV is targeting to complete the Bankable Feasibility Study
and make a production decision, which will be subject to receipt of
environmental and mining permits and approvals, by the end of the second
quarter of 2010.
The Raven Coal Project, located in the Comox Coal Basin of Vancouver
Island, British Columbia, has 39,093,000 tonnes of measured and indicated and
59,004,000 tonnes of inferred coal resources as reported in the Company's
43-101 Technical Report prepared by O.R. Cullingham Resource Consultant Ltd.
(see press release May 29, 2007). The coal is classified as High Volatile A
Bituminous and would be suitable in a metallurgical coal blend or as a thermal
ITOCHU Corporation is a major Japanese trading house and, among other
things, has extensive experience in the development of coal mines and the
marketing and sale of coal globally and has investments in coal mines in
Australia and Indonesia. ITOCHU had annual revenues of $29 billion US and Net
Income of $2.2 billion in the fiscal year ended March 2008.
LG International Corp. is a leading general trader in Korea with a
worldwide overseas branch network and has abundant experience in coal mining
development and the marketing and sales of coal worldwide. LG International
Corp. has annual revenues of $5.8 billion US and investments in coal mines in
Russia, Australia, and Indonesia.
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: John Tapics, CEO or Rod Shier, CFO at (604)