Name and Location
Vista coal project, Canada.

Client
Coalspur Mines.

Project Description
The Vista coal project has marketable coal reserves of 313-million tons from a recoverable coal reserve of about 566-million tons.

The project envisages the development of a coal mine that produces an estimated 12-million tons a year.

The mine’s plan has been revised.

Phase 1 will be developed in two stages. The first stage will produce three-million tons a year of coal, with the second stage providing a further two-million tons a year of coal.

Phase 2 will add seven-million tons a year of coal production, taking the project to its ultimate design capacity of 12-million tons a year of coal.

Value
The estimated total net funding is C$841-million.

Duration
The ramp-up to full capacity will now be more than five years, as opposed to four years indicated in the feasibility study, with full production expected to be reached in 2019.

Latest Developments
Coalspur has been issued three approvals and licences for the Phase 1 development of its Vista project.

The Alberta Energy Regulator (AER) has approved the project for construction and operation under the Environmental Protection and Enhancement Act, while also approving the project to carry out construction and operating activities under the Water Act.

Coalspur has also been awarded a licence to operate works and to divert a limited amount of ground and surface water, each year.

The final stage of the AER approval process is the issue of a mineral surface lease under the Public Lands Act.

Coalspur previously announced that it will use the remainder of this year, and part of 2015, to conduct a strategic review of the funding options for the Vista project.

The review will consider alternatives such as securing full funding for the project, the sale of all or a portion of the company’s assets, the formation of a joint venture, a possible merger or the outright sale of the entire company.

Refinancing and recapitalisation will also be investigated.

On Budget and on Time?
Coalspur initially planned to start construction at Vista in September 2013, but it had to delay activities while awaiting development approval. Regulatory approval had initially been scheduled for the end of June 2013, with project completion planned for mid-2015, but the AER received several statements of concern against the Vista project.

Contact Details for Project Information
Coalspur Mines, tel +1 403 261 9997 or fax +1 403 767 6378.