Vancouver, British Columbia--(Newsfile Corp. - July 15, 2014) - Coalspur Mines Limited (ASX: CPL) (TSX: CPT)
("Coalspur" or "Company") is pleased to announce that
it has reduced the size of its board of directors ("Board") in order to better
position the Company as it undertakes the strategic review process that was
announced on 23 June 2014.
As part of its strategic review process, the Company will
consider all matters relating to the future funding of the Company including its
current finance facilities and capital structure. Two of the Company's
directors, namely Messrs. Colin Steyn (the Chairman) and Peter Breese, are
affiliated with Borrowdale Park S.A. ("Borrowdale Park"), which is the Company's
largest shareholder and a significant secured creditor. Borrowdale Park has a
23.98% shareholding in the Company and a current loan facility under which
Coalspur has drawn a principal amount of C$33 million.
In light of these affiliations in the context of the strategic
review process, it is considered to be in the best interests of both the Company
and Messrs. Steyn and Breese that they resign from the Board. Accordingly,
resignations have been received from each of Messrs. Steyn and Breese, effective
immediately. President and CEO, Gill Winckler, said "We will miss the valuable
contributions that have been made by both Colin and Peter over the past few
years. However, if they had remained on the Board they would have been required
to exclude themselves from all discussions and decision-making which could
potentially impact Borrowdale Park's position. Such matters are likely to
constitute a significant proportion of the Company's business in the immediate
future. We look forward to their ongoing support as shareholders of the
Company."
The Company and the continuing members of the Board would like to
thank Messrs. Steyn and Breese (and their alternate, Mr. Bill Smart) for their
guidance and contribution during their time as directors of Coalspur.
Colin Steyn said "It is with regret that I am resigning from
the Board of Coalspur. However I believe this decision is in the best interests
of the Company as it undertakes its strategic review process. Both Peter and I,
as well as Borrowdale Park, remain fully supportive of the Board and the Company
and look forward to Coalspur's next phase. I would like to thank management and
my fellow directors for their tireless support and contribution during my
chairmanship, and wish them and the Company all the best for the future."
The
Board of Coalspur now comprises three non-executive directors, all of whom have
been directors of Coalspur for more than two and a half years, plus the Chief
Executive Officer, Ms. Gill Winckler. Mr. Mark Rodda has been appointed as
Chairman of the Board.
The Audit and the Remuneration and Nominations Committees will
both comprise all three non-executive directors. The Audit Committee will be
chaired by Mr. Rodda and the Remuneration and Nominations Committee will
continue to be chaired by Mr. Denis Turcotte.
The role of the Special Committee will continue as described in
the announcement of 23 June 2014.
The restructured Board will enable the Company to act in a
decisive and streamlined manner throughout the strategic review process.
About Coalspur
Coalspur is a coal development company with approximately
55,000 hectares of coal leases located within the Hinton region of Alberta,
Canada. Coalspur's flagship project is Vista, which covers approximately 10,000
hectares and provides a large scale, surface mineable, thermal coal development.
Vista is located adjacent to CN Rail's main line, which is suitable for the
transport of coal to deepwater ports on Canada's west coast. Coalspur has
secured a port allocation agreement with Ridley Terminals Inc., which is
essential to the logistics supply chain necessary to export coal from Vista to
the growing demand from the Asia Pacific countries.
For additional information, please contact:
Ryan Walchuck
Media and Investor Relations
rwalchuck@coalspur.com
P: +1 604
220 8595
No regulatory authority has approved or disapproved of the
information contained in this release.
This release contains forward-looking information concerning
Coalspur, including information regarding Coalspur's plans for financing,
permitting and developing Vista. All statements in this release, other than
statements of historical facts, that address events or developments that
Coalspur expects to occur, are statements of forward-looking information.
Although Coalspur believes that such forward-looking information is based on
reasonable assumptions, such information is not a guarantee of future
performance and actual results or developments may differ materially from the
forward-looking information. Material factors or assumptions used by Coalspur to
develop forward-looking information include the following: (a) additional
financing for the development of Vista will be available on reasonable terms;
(b) coal price and currency exchange rate assumptions; (c) regulatory approvals,
permits and licences for the development, construction and operation of Vista
will be obtained on a basis consistent with Coalspur's current expectations; (d)
Coalspur, EPC and mining contractors will execute construction and production
plans on cost and on schedule; (e) key personnel will be retained or recruited;
(f) accuracy of mineral resource and reserve estimates; (g) Coalspur's title to
mineral and surface rights will be maintained; (h) no significant disruptions
affecting operations, whether due to labour disruptions, supply disruptions,
power disruptions, damage to equipment or otherwise; and (i) Coalspur's secured
creditors will continue to be supportive of the strategic process. Factors that
could cause actual results to differ materially from forward-looking information
include: (i) uncertainties relating to obtaining the additional financing
required for the development of Vista or successfully selling Coalspur or some
for all of its assets and uncertainties related to project realization values;
(ii) conditions for drawdown and other requirements under existing credit
facilities, including the acceleration of debt due to events of default; (iii)
fluctuations in coal prices and currency exchange rates; (iv) uncertainties
regarding the receipt and conditions of regulatory approvals, permits and
licences required for the development, construction and operation of Vista; (v)
uncertainties relating to the ability of Coalspur, EPC or mining contractors to
execute construction or production plans on cost or on schedule; (vi)
uncertainties relating to the retention or recruitment of key personnel; (vii)
take or pay commitments with Ridley Terminals; (viii) uncertainties in
Coalspur's mineral resource or reserve estimates; (ix) any significant
disruptions affecting operations; (x) uncertainties related to aboriginal claims
and overlapping mineral or surface rights; and (xi) uncertainties related to
general economic, market and business conditions. For more information on
Coalspur, investors should review Coalspur's continuous disclosure filings that
are available at www.sedar.com and www.asx.com.au.
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