Coalspur is an Australian Securities Exchange-listed Canada-focused thermal coal development company with approximately 55,000 hectares of leases located within the Hinton region of Alberta.
Its flagship coal project is the Vista coal project which is due to commence construction once regulatory approvals are passed within the coming months.
The company began the first quarter of 2013 with $C14.8 million cash held and has come through the three months with just under $14.1 million in the bank.
Coalspur spent $10.8 million during the quarter – mostly on development costs –but through drawing down $10 million from a $70 million credit facility, the company was able to close the quarter in a similar position to the last.
The $70 million loan facility was secured in February 2012 through a binding agreement with Highland Park Group.
Just last month, the company concluded another arrangement to fund the majority of stage 1 of the Vista project through a $US350 million senior secured debt facility.
The arrangement enables Coalspur to retain all offtake and marketing rights and retain 100% ownership of Vista.
During the quarter Coalspur signed a rail agreement with CN Rail and made two managerial appointments.
Colin Gilligan was appointed chief operating officer effective April 1 and Richard Tremblay was appointed operations vice president, effective March 18.
Coalspur simultaneously announced its annual report but due to a recent reporting change to align with its Canadian subsidiary, the report was only for the six-month period ended December 31, 2012, with the company’s financial year end date moved from June 30 to December 31.
The company’s net cash outflow from operating and investing activities during the six months totalled $11.8 million, compared to $93.5 million for the year ended June 30, 2012.
“On an annualised basis, current period expenditures for employees, suppliers and mine development were about 50% higher than the prior year, however, these were more than offset by the absence of payments for new mineral leases and port capacity,” the company noted.
Vista is one of the largest undeveloped export thermal coal projects in North America with measured and indicated coal resources of more than 1 billion tonnes and marketable reserves of 313 million tonnes.
Vista covers approximately 10,000ha, providing a large-scale surface mineable thermal coal project containing a strike length of over 20km of continuous gently dipping coal seams.
Coalspur aims to begin production at Vista in 2015.