WCC will develop and operate the Brule mine similar to its now depleted Dillon mine. On this basis, the company estimated that with minimal additional capital, production at Brule would be between 700,000 tonnes and 1Mt, with cash costs per tonne in the mid $60s.
The Brule mine will provide a continuity of ULV-PCI production from the Burnt River properties to the company’s ULV-PCI customers. ULV-PCI coal from Burnt River is ranked as a premium PCI coal and has been sold to major steel mills in China, Japan, Korea, Taiwan and Europe.
The mine permit is expected later this month.
To inject capital into the project, the company has arranged a non-brokered private placement with London-based Cambrian Mining of 8,777,066 shares at $C1.95 per share for total proceeds of approximately $C17.1 million.
The net proceeds from the placement will be used to fund the production start-up schedule of the Brule mine; for the company’s share of the continuing work program on the Belcourt Saxon properties; initial funding required for the regulatory permitting for the company’s Hermann and EB mine properties; and for general working capital.
WCC was also named British Columbia’s Top New Exporter for 2006 in a ceremony earlier this month.
