TORONTO, Jan. 13, 2012 /CNW/ - Corsa Coal Corp. (TSXV: CSO) ("Corsa" or the "Company") provides an update on the Westland Run Property and announces the resignation of a Director.
Westland Run Property
The Westland Run Property (formerly known as the Pittsburgh-Kovalchik Property) is an underground coal property located in Washington County, Pennsylvania, which the Company has the right to purchase. It contains indicated resources of 71 million tons of which 57 million tons are thermal coal quality and 14 million tons are metallurgical coal quality. The total purchase price is US$20,000,000. The Company was required to exercise its option to purchase the property by December 31, 2011 and pay US$6,100,000 on or before January 31, 2012. The Company has obtained an extension of the option exercise date to June 30, 2012 by the payment of US$100,000 on December 30, 2011 and the payment of US$100,000 on or before March 31, 2012. If the Company exercises the option, US$5,900,000 is due on or before July 30, 2012. If the option is exercised, the balance of the purchase price will be paid in four equal annual installments, including interest at the rate of 3%, commencing one year after the closing date of the purchase. The Company continues the evaluation of the Westland Run Property.
The mineral resource estimates have been prepared under the supervision of, and the technical information in this press release was approved by, Dennis Noll of Earthtech Inc., a qualified person, as such term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Dennis Noll is independent of Wilson Creek. A technical report prepared in accordance with National Instrument 43-101 entitled "Amended and Restated Technical Report on Coal Reserves and Resources; Wilson Creek Energy, LLC; Somerset, Cambria and Washington Counties, Pennsylvania and Garrett County, Maryland, USA, dated November 16, 2010" in respect of Wilson Creek's material properties has been filed on www.sedar.com. The technical report describes the exploration history, geology and resources of the properties. Disclosure in this press release of mineral resources is based on the technical report. Details of the quality or grade of each category of mineral resources and key assumptions, parameters and methods used to estimate the mineral resources is included in the technical report. The technical report also includes a description of environmental and permitting matters.
Resignation of a Director
Kerry Mears has resigned as a Director of the Company as he will not be standing for election at the next shareholders' meeting. Mr. Mears will continue on a full time basis to advise the Company on business development opportunities and other matters.
Information about Corsa
Corsa's primary business is the mining, processing and selling of metallurgical coal, as well as actively exploring, acquiring and developing resource properties consistent with its coal business.
Certain information set forth in this press release contains "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management's assessment of future plans and operations and are based on current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "estimates", "expects" "anticipates", "believes", "projects", "plans", "outlook" and similar expressions. These statements are not guarantees of future performance. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Corsa's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: risks that transactions referred to will not be completed; liabilities inherent in coal mine development and production; geological, mining and processing technical problems; inability to obtain required mine licenses, mine permits and regulatory approvals required in connection with the mining and processing of coal; unexpected changes in coal quality and specification; risks that the Wilson Creek coal preparation plant will not operate at production capacity during the relevant period; variations in the coal preparation recovery rates; dependence on third party coal transportation systems; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; changes in the regulations in respect to the use, mining and processing of coal; changes in regulations on refuse disposal; the effects of competition and pricing pressures in the coal market; the oversupply of, or lack of demand for, coal; currency and interest rate fluctuations; various events which could disrupt operations and/or the transportation of coal products, including labor stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; and management's ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The reader is cautioned not to place undue reliance on forward-looking statements. The Company does not undertake to update such forward looking statements, unless required to do so by law.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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