Corsa Announces Completion Of $22.2 Million Private Placement And Acquisition Of Keyser Property
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, December 15, 2011 - Corsa Coal Corp. (TSXV: CSO) (“Corsa” or “the Company”) is pleased to announce the successful completion of the previously announced private placement (the Private Placement”) and the previously announced acquisition of the Keyser Property.
The Company is pleased to announce the successful completion of the Private Placement of 44,341,666 common shares at a price of C$0.50 per share for aggregate gross proceeds to Corsa of C$22,170,833, including common shares issued pursuant to the exercise of an option granted to the syndicate of underwriters.
The syndicate of underwriters was led by GMP Securities L.P. and included Dundee Securities Ltd., Haywood Securities Inc. and Cormark Securities Inc. (collectively, the “Underwriters”).
The Underwriters have received a cash commission in connection with the Private Placement equal to 5% of the gross proceeds of the Private Placement, subject to reduction, in whole or in part, for certain investors.
The Company intends to use the net proceeds from the Offering for the continued exploration and development at the Company’s metallurgical coal operations in Pennsylvania and Maryland, USA and for working capital and general corporate purposes.
This press release does not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration, or an exemption from registration, under the Securities Act.
The Company is also pleased to announce it has completed the purchase of the rights to mine the Lower Kittanning coal seam under approximately 2,300 acres in the Jenner and Conemaugh Townships in Somerset County, Pennsylvania referred to as the Keyser Property, located 25 miles by road from the Company’s coal preparation plant. The purchase price was a total of US$2.8 million, of which US$1 million has been paid with the balance payable on December 13, 2012 with interest of 4% on the unpaid balance.
The Keyser Property has been drilled with a total of 24 cores extracted within and immediately adjacent to the footprint of this indicated resource. All of these core holes were drilled in 2011 under the supervision of an independent qualified person. Preliminary calculations for the Keyser Property, utilizing Carlson Mining Software, indicate the presence of a total of 11.0 million tons of in-place, low volatile, coking coal within the Lower Kittanning seam. The Lower Kittanning coal seam is located 100 to 600 feet below the surface and exhibits an average inclination of 3 degrees with an average seam thickness of 3.45 feet.
This deposit meets the definition of an indicated resource as per National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”). A technical report (within the meaning of NI 43-101) has not been filed in respect of the Keyser Property. The effective date of the estimate of the mineral resources contained in this press release is October 14, 2011. The estimate of mineral resources reflects known environmental, permitting, title and other relevant matters. The deposit will require further definition in the following areas in order to achieve the classification of a coal reserve: surface and mineral control, mineability related to geologic conditions, and economic viability. The mineral resources referred to in this press release have not been classified as mineral reserves and a feasibility study has not been completed. Accordingly the economic viability of the Keyser Property has not yet been demonstrated.
The mineral resource estimate has been prepared under the supervision of, and the technical information in this press release was verified and approved by, Dennis Noll of Earthtech Inc., a qualified person, as such term is defined in NI 43-101 - Standards of Disclosure for Mineral Projects. Dennis Noll is independent of Corsa.
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: ; risk that final regulatory approvals for the Private Placement will not be obtained; the risk the that proceeds will not be sufficient to satisfy the Company’s proposed uses; ; 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.
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.