Corsa Provides Marketing And Wash Plant Update
Toronto, Ontario – Corsa Capital Ltd. (TSXV: CSO) announces that it now has arrangements in place for the sale of 500,000 tons of metallurgical coal from April 2011 to March 2012 at current world prices which it expects will result in net prices to Corsa averaging between $US 155 to $US 170 per ton FOB rail car depending on normal industry discounts based on coal specifications.
Don Charter, President and Chief Executive Officer of Corsa, stated ‘This is another important step in the development of Corsa and demonstrates that our low vol met coal is a desirable product. This pricing exceeds that used for our internal forecasting and is reflective of the very strong demand and pricing environment in which we find ourselves.’
Wash Plant Commissioning
The Wilson Creek plant is essentially complete with water and power now fully established to the plant. Electrical, rotation, systems programing and pump testing are underway with water balancing scheduled to begin at the end of the week and completed by April 12th. The raw coal truck dump facility and handling area as well as the refuse conveyor system are complete and installation of the raw coal conveyor system is well underway. It is expected that the full plant material handling facilities will be completed by the end of the week and operational by April 22nd.
It had initially been expected that the processing of coal would commence by the end of April with a temporary rail load out facility with the completion of the permanent rail load out schedule for the end of May. Due to extremely difficult weather conditions it has been impossible to get sufficient ground access to install the necessary liners on the clean and raw coal, refuse and water handling system areas. While all design work and permitting for this work has been completed and the materials and crews are fully available and working, progress has been hampered by weather. The clean coal storage area, which must be completed before coal processing can properly commence, is currently a marshalling area for construction and cannot be completed until other construction is finished. As a result it has been determined that coal processing should not commence until the permanent load out is completed. Coal processing is now expected by the end of May. The capital cost continues to be in line with the original budget of approximately $US21million.
Corsa continues to stock pile raw coal for the plant and currently has raw coal inventory ready for processing of approximately 55,000 tons. The current schedule allows that the plant will be operational in advance of the Casselman mine expected start up.
Mr. Charter stated “The clean coal storage area must be completed and while the team has done a terrific job to work around delays, the extended period of bad weather in the last six weeks has made it impossible for them to make the initial time line. Given the obstacles, including a three week delay in the local power authority providing power, the team has done a great job in achieving a mid-April date for commissioning and have stayed within budget.”
Information about Corsa
Corsa’s main operating subsidiary is Wilson Creek Energy LLC based in Somerset County, Pennsylvania. Its 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.
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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”, and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. 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: risks that the transaction referred to in this press release will not be completed; 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; 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 of coal; 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 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.