COALSPUR COMPLETES C$44.4 MILLION PUBLIC OFFERING
CALGARY, May 3 /CNW/ --
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO
U.S. NEWS AGENCIES
CALGARY, May 3 /CNW/ - Coalspur Mines Limited ('Coalspur' or 'Company') (ASX: CPL, TSX: CPT) is pleased to announce that it has successfully completed its public
offering of 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 C$44.4 million ('Public Offering'). This was announced to the market on April 13, 2011.
The Public Offering was managed by a syndicate of agents led by Haywood
Securities Inc., BMO Capital Markets and RBC Capital Markets and
including Salman Partners Inc.
In addition to the Public Offering, the previously announced private
placement of 6,000,000 ordinary shares at C$1.85 each to raise a
further C$11.1 million, before costs ('Private Placement'), is expected to be completed in June 2011. The Private Placement is
being made to the Highland Park Group, a strategic shareholder of the
Company.
Commenting on the completion of the Public Offering, Mr Gene Wusaty,
Managing Director and CEO said, 'We have an exciting few months ahead
of us now with impending results from a number of recent activities and
the rapid progression of the Bankable Feasibility Study.'
'We will also be bringing forward a number of key activities that have
the potential to enhance the production profile and value of the Vista
Coal Project whilst we continue to grow the Company's profile in the
North American investment community.'
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 and will not be 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.
About Coalspur
Coalspur Mines Limited ('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
America.
____________________________________________________________________
|JORC / NI 43-101 Coal Reserves |
|____________________________________________________________________|
| | Recoverable Coal Reserve| Marketable Coal Reserve|
|______________|_________________________|_________________________|
| | | |Proven & | | |Proven & |
| |Proven|Probable| Probable|Proven|Probable| Probable|
| | (Mt)| (Mt)| (Mt)| (Mt)| (Mt)| (Mt)|
|______________|______|________|_________|______|________|_________|
|Export Product| 349.2| 79.5| 428.7| 185.9| 42.7| 228.7|
|______________|______|________|_________|______|________|__________|
|Domestic | 66.2| 26.8| 93.0| 22.5| 8.9| 31.4|
|Product | | | | | | |
|______________|______|________|_________|______|________|_________|
|Coalspur Total| 415.4| 106.3| 521.7| 208.4| 51.6| 260.1|
|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 & | |
| |Measured|Indicated| Indicated|Inferred|
| | (Mt)| (Mt)| (Mt)| (Mt)|
|________________________|________|_________|___________|________|
|Vista Coal Project | 588.9| 331.6| 920.5| 282.3|
|________________________|________|_________|___________|________|
|Vista South Coal Project| 51.5| 41.9| 93.3| 75.0|
|________________________|________|_________|___________|________|
|Coalspur Total Resource | 640.4| 373.5| 1,013.8| 357.3|
|________________________|________|_________|___________|________|
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'.
Regulatory Disclosures
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 Company's
permits and approvals, 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.
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Gene Wusaty
Managing Director and CEO
Telephone: 1 403 975 7901