TORONTO, Oct. 9, 2014 /CNW/ - Pacific Coal Resources Ltd. (TSXV: PAK) is pleased to announce that Norcarbon S.A.S. ("Norcarbon"), a subsidiary of the Company, has signed a joint operation agreement with Sloane Mining Services Sucursal Colombia ("Sloane") for the production, purchase and sale of coal at the Company's Cerro Largo mine.
The agreement will be in place until June 5, 2021 and requires Sloane to exploit a minimum of 4,200,000 tonnes of coal during this time. As part of the agreement, Sloane will be responsible for the mine's thermal coal production, commercialization and associated costs and Sloane will be entitled to receive and commercialize a percentage of the coal production, to cover, among other things, the mine operating cost. Norcarbon will be entitled to the remaining percentage of production, which will be sold to Sloane at a set price. The set price may be adjusted as a result of changes in the stripping ratio at the mine and international coal market prices.
The agreement further contemplates that Sloane will provide Norcarbon with an advance payment for the purchase of the future coal production which it is entitled to. Sloane, will also sell to Norcarbon a certain amount of coal enabling the company to continue to meet its' commercial commitments. Sloane's operation of the Cerro Largo mine is expected to commence in October 2014.
About Pacific Coal Resources Ltd.
Pacific Coal Resources Ltd. is a Canadian-based mining company engaged in the acquisition, exploration and production of coal and coal-related assets from properties located in Colombia. The Company's common shares are listed on the TSX Venture Exchange and trade under the symbol "PAK".
Forward Looking Information:
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Pacific Coal to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Pacific Coal disclaim, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. 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. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE: Pacific Coal Resources Ltd.
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