Corsa Acquires Option on Miller-Walker Coal Lease, Pennsylvania, USA; Announces Metallurgical Coal Strategy
Vancouver, B.C., December 21, 2009 – Corsa Capital Ltd. (CSO: TSX-V) (“the Company”) is pleased to announce today it has signed an option agreement with Sherpa Mining Contractors, Inc. (“Sherpa”) on the “Miller-Walker Property” Coal Lease in Somerset County, Pennsylvania, USA. The transaction is being conducted through Corsa Coal Pennsylvania, Inc. (“Corsa Coal”), a 100% owned subsidiary of Corsa Capital Ltd.
The option with Sherpa is for Corsa Coal to acquire certain mining rights to the 105 acre Miller-Walker Property (“Property”) in Somerset County, Pennsylvania, USA. The Property is a metallurgical coal lease, of which the scope and size of the reserve base is yet to be determined.
The option terms on the Miller-Walker Property are as follows:
- Corsa Coal will make an initial cash payment to Sherpa of USD$25,000 (“Option Payment”) for the exclusive option to acquire the property and the right to fund the exploration of the Property and also fund completion of the permitting required in any mine site development process;
- Corsa Coal has the right and option to acquire a 100% interest in the Property, with no further expenditure commitments, by making a one-time cash payment to Sherpa in the amount of USD$1,500,000 before December 31, 2011. Corsa Coal's exclusive option may be executed in writing at any time prior to December 31, 2011, and is subject to the terms and conditions of the instruments granting Sherpa its interests in the Property;
- Corsa Coal is required to incur exploration expenditures, (including costs associated with engineering studies, permitting or securing coal leases) in Year 1 before December 31, 2010, with a minimum commitment of USD$50,000. Exploration expenditures in Year 2 are at the option of Corsa Coal and must be before December 31, 2011;
- If Corsa Coal terminates or does not exercise its option to acquire a 100% interest in the Property within the allotted 2 year time period, the option will lapse. Sherpa will repay all expenditures made by Corsa Coal on the Property, including the Option Payment, from proceeds from future mining income from the Property. Repayments to Corsa Coal by Sherpa will be made at the rate of $2 per ton of raw coal extracted, with minimum payments of $15,000 per annum until the expenditures are repaid.
The transaction is subject to the acceptance of the TSX-Venture Exchange.
The Board of Directors considers the acquisition of the option on the Miller-Walker Property a first step in the execution of its metallurgical coal strategy. In the reformation of the corporation in mid-2009, the Company set the following objectives:
- Acquire producing coal assets with high quality reserve base
- Employ superior management practices and prudently injecting capital to upgrade operations
- Achieve organic growth by “ramping up” production and/or rapidly permitting and developing high quality reserves
Corsa has a team with significant experience in developing and mining coal deposits in this region of the Appalachian coal fields and they are currently conducting due diligence, evaluation work and discussions on several development projects, mining operations and corporate opportunities in the coal sector. Please visit the Company’s website at: http://www.corsacapital.com/corporate/management/ for more information.
The Company has given formal written notice to Kaminak Gold Corporation of its intention to let lapse the option on Kaminak’s Sy Gold Project in Nunavut, Canada, which does not fit within the parameters of the Company’s metallurgical coal strategy.
The Board of Directors has accepted the resignation of Ernie Thrasher, effective immediately, due to increasing demands related to his international coal trading enterprise. The members of the Company’s board thank Mr. Thrasher for his input and efforts to date and wish him great success in the future.
About Corsa Capital
Corsa Capital Ltd. is a Vancouver, BC based mineral resources company. Corsa’s management team, board of directors, and advisory board, have significant experience in mineral resource property acquisition, development, and operations. The Company intends to leverage this experience to acquire additional properties and build a valuable portfolio of projects. Please visit www.corsacapital.com for more information.
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 release.
Certain disclosures in this release, including management's assessment of the Company’s plans, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to the Company's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.