Apart from accelerating development of Coalspur’s Hinton Coal project in Alberta, Canada, the placement is expected to strengthen the company’s financial position, provide access to Highland Park’s resource management skills, and help lift its profile in North American markets.

The first tranche will raise $22.5 million by the issue of 45 million shares and 22.5 million free attaching listed options on a one-for-two basis. The total placement will involve an equity issue of 60 million shares at $0.50 each to raise a total of $30 million.

The key investors in Highland Park include original founders and former executives

of Toronto-based LionOre Mining International. LionOre was acquired by Norilsk Nickel in 2007 for $US6.3 billion.

Coalspur has invited Colin Steyn, previously chief executive of LionOre, to join its board following completion of the transaction.

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’s shares last closed at 79.5c on Friday.