/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
TORONTO, July 25, 2013 /CNW/ - Corsa Coal Corp. (TSXV: CSO) ("Corsa")
announces that, in connection with its proposed acquisition of Quintana
Kopper Glo Investment, LLC ("Kopper Glo") and related private placements (the "Transaction"), a technical report in respect of the Kopper Glo-controlled Kopper
Glo Project, prepared in accordance with the requirements of National
Instrument 43-101 - Standards of Disclosure for Mineral Projects, has been made available on www.sedar.com under Corsa's profile. This technical report is entitled "Technical
Report on the Coal Reserve and Coal Resource Controlled by Kopper Glo
Fuel, Inc., Tennessee, USA - Prepared in accordance with National
Instrument 43-101 Standards for Disclosure of Mineral Projects
Effective April 1, 2013" (the "KG Technical Report"). A description of the Transaction, including the various conditions
to completion, and a summary of the KG Technical Report are included in
Corsa's Filing Statement dated July 24, 2013, also available on
www.sedar.com under Corsa's profile.
Kopper Glo Project
The bituminous coal deposits comprising the Kopper Glo Project are
located on properties controlled by Kopper Glo in Campbell and
Claiborne Counties, in northeastern Tennessee, and are part of the
Appalachian region of the eastern United States.
Kopper Glo controls a total of 80.6 million tons of measured and
indicated in-situ coal resource tons and 1.4 million inferred in-situ
coal resource tons. Of the total measured and indicated tons, 52% are
measured and 48% are indicated. Coal resource estimates have been
prepared using industry-standard methodology to provide reasonable
prospects for economic extraction. The measured and indicated coal
resource contains low sulfur, low ash, and high British thermal unit
per pound (Btu/lb.) bituminous coal. Coal resources are reported inclusive of the coal reserves and coal
resources that are not coal reserves do not have demonstrated economic
Kopper Glo controls 22.38 million moist, recoverable proven and probable
coal reserve tons, of which 61% is considered proven and 39% is
considered probable, after the application of all mining factors. Of
the total coal reserve, 1.93 million moist, recoverable tons are
surface-mineable, 19.47 million moist, recoverable tons are
underground-mineable, and 0.98 million moist recoverable tons are
highwall-mineable. Of the total coal reserve, 4.27 million tons are
permitted for mining by appropriate federal regulatory authorities with
the responsibility for oversight of mining operations in the United
States and in Tennessee.
Coal reserve estimates were derived from the defined coal resource
considering relevant processing, economic (including independent
estimates of capital, revenue, and cost), marketing, legal,
environmental, socioeconomic, and regulatory factors and are presented
on a moist (6.0 percent for washed product and 4.5 percent for raw
product), recoverable basis, and represent the saleable product from
the Kopper Glo Project; have been prepared using industry-standard
methodology to provide reasonable assurance that the coal reserves are
economic and recoverable at the time of evaluation; and are the
economically viable coal tonnage Kopper Glo currently plans to mine
based on its business plan of April 1, 2013.
Projected Cash Flows
Projected consolidated net cash flow, excluding debt service, from
operations for the Kopper Glo Project from 2013 through 2041 totals
$380.7 million over the projected life of the Kopper Glo Project.
Projected capital expenditures total $27.2 million during the first
five years and $135.2 million over the projected life of the Kopper Glo
Project. On an un-levered basis, the net present value of the projected
project cash flows amounts to $126.6 million at a 9.31% discount rate.
The pre-feasibility financial model prepared for the KG Technical
Report was developed to test the economic viability of each coal
resource area. The net present value estimate was made for purposes of
confirming the economics for classification of coal reserves and not
for purposes of valuing Kopper Glo or its assets.
The above information relating to the Kopper Glo Project is qualified in
its entirety by the full text of the KG Technical Report.
The mineral reserve and resource estimates have been prepared under the
supervision of, and the technical information in this press release was
verified and approved by Justin S. Douthat, a qualified person, as such
term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Douthat is independent of Corsa.
Information about Corsa
Corsa's primary business is the mining, processing and selling of low
volatile 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. Such information includes projected cash
flows, expenditures and resource and reserve estimates, and is based on
current expectations, assumptions and beliefs, which may prove to be
incorrect. These statements are not guarantees of actual production or
cash flows, or that expenditures will not exceed those projected. Such
forward-looking statements necessarily involve known and unknown risks
and uncertainties, which may cause timing to be different, potentially
materially, than expressed or implied by such forward-looking
statements. These risks and uncertainties include, but are not limited
to the risks described in Corsa's Filing Statement dated July 24, 2013.
There can be no assurance that forward-looking statements will prove to
be accurate, as actual timing could differ materially from those
anticipated in such statements. The reader is cautioned not to place
undue reliance on forward-looking statements. Corsa does not undertake
to update such forward looking statements, unless required to do so by
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the
contents of this press release. Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE: Corsa Coal Corp.