Shares in Coalspur shot up 23% in early afternoon trade yesterday to 74c on the back of the news.
The placement will involve an equity issue of 60 million shares at 50c each to raise the $30 million.
Besides providing funds for Hinton and allowing Coalspur to pursue related new business development opportunities, it also lifts the company’s profile in the North American market.
“We are extremely pleased to have attracted a strategic investor of Highland Park’s calibre. They have a proven track record in assisting the development and financing of mines and will provide us with a significantly enhanced profile in Canada and other Northern hemisphere markets,” Coalspur managing director Gene Wusaty said.
“Their marketing and investor relation activities will be invaluable to us ahead of a probable Coalspur TSX listing later this year.
“Importantly, the company has been able to secure Highland Park as a strategic investor while maintaining 100 per cent of the offtake and marketing rights of our projects.”
Key investors in Highland Park include the original founders and former executives of LionOre Mining International which was acquired three years ago by Norilsk Nickel for $US6.3 billion.
Highland Park has since invested in Mantra Resources and Mirabela Nickel.
Coalspur has invited former LionOre chief executive Colin Steyn to join its board. Prior to LionOre, Steyn was the executive director in charge of metallurgical operations in Zimbabwe for Rio Tinto and is currently director of Mantra and Mirabela.
The equity issue will occur in two tranches with the first, subject to shareholder approval, consisting of 45 million shares and 22.5 million free attaching listed options on a one-for-two basis to raise $22.5 million.
Subject to the necessary approvals, at Highland Park’s election for the purposes of Coalspur funding future business development opportunities, the second tranche will consist of a further 15 million shares and 15 million free attaching unlisted options on a one-for-one basis to raise $7.5 million.
Coalspur is planning a 7.4 million tonne per annum run-of-mine thermal coal operation, exporting 4Mtpa saleable coal over a minimum mine life of 14 years.
The resource estimate of Hinton is 467Mt, of which 90% is measured and indicated.
Coalspur shares are up another 7.6% to 77.5c this morning.
