Alberta, Feb 3, 2012 (ABN Newswire) - Coalspur Mines Limited (ASX:CPL) (TSE:CPT) is pleased to announce that the Company's largest shareholder, the Highland Park Group ("Highland Park"), has elected to exercise its option to purchase an additional 15 million ordinary shares in the Company at an exercise price of A$0.80 per share for gross proceeds of A$12.0 million through its affiliate Borrowdale Park S.A. The election follows the recent completion of a positive feasibility study on the Company's flagship Vista Coal Project ("Vista"). Following the exercise of the option, Highland Park will own a total of 138,483,333 ordinary shares in the Company, which represents approximately 22.3% of the ordinary shares currently outstanding.
Managing Director and CEO, Gene Wusaty said "This is a very positive event for the Company as it demonstrates the continued support from Highland Park for the Company and in particular management's goal of progressing Vista into production on the planned timeline. It allows us to build on the momentum from the recent port, rail and feasibility study announcements and move forward with the next stage of Vista's development, including detailed engineering and completion of the regulatory approval process."
Coalspur Mines Limited ("Coalspur" or "Company") is a coal exploration and development company with approximately 40,600 hectares of coal leases located within the Hinton region of Alberta, Canada. Coalspur’s flagship coal project is the Vista Coal Project (“Vista”) which has the potential to be the largest export thermal coal mine in Canada. Vista covers approximately 9,984 hectares and provides a large scale, surface mineable, thermal coal project. Vista has the advantage of leveraging off of established first world infrastructure with CN Rail’s main line located adjacent to Vista which is substantially underutilised and provides a rail line suitable for the transport of coal to deepwater ports on Canada’s west coast. Coalspur has also secured a port allocation agreement with Ridley Terminals Inc. which is essential to the logics supply chain necessary to export coal from Vista to the growing demand from the Asia Pacific Rim countries, including China, Japan, and Korea.
A feasibility study was completed on Vista in January 2012, which defined a 30 year mine plan with forecast annual production capacity of 11.2Mtpa. Marketable Coal Reserves on Vista are 313Mt from a Recoverable Coal Reserve of approximately 566Mt. Initial development costs for Vista are expected to be approximately C$860 million with an additional approximately C$370 million required to reach full capacity.
Coalspur has offices in Calgary and Hinton in Canada as well as in Australia. 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".
ASX:CPL) (
Coalspur Mines Limited
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