Coalspur Mines Limited - December 2012 Quarterly Report

PERTH, Western Australia, Jan. 31, 2013 /CNW/ - Coalspur Mines Limited 
("Coalspur" or "Company") (ASX: CPL, TSX: CPT) is pleased to present its 
quarterly report for the three months ending 31 December 2012. 
Highlights: 
--  The Company secured a US$300 million senior debt commitment 
    (the "Facility") from EIG Global Energy partners ("EIG").
  o Proceeds from the Facility will fund the majority of the 
development capital required to achieve first production at the 
Vista Coal Project ("Vista")
  o The Facility is expected to be executed and effective by the end of 
the quarter ending 31 March 2013
  o Securing this funding helps maintain the timeline for Vista where 


    construction is scheduled to commence in 2013 with first production
    in 2015
    --  The Company completed an optimisation study (the "Study") on


    Vista. Highlights of the Study include:
  o Development capital to achieve first production reduced to C$527 
million (C$343 million lower than the Vista Feasibility Study)
  o Through utilising mining contractors development capital can be 


    reduced by further C$82 million, to approximately C$445 million
    --  Coalspur agreed to binding key terms for a definitive
        commercial transportation agreement (the "Agreement") with CN


    Rail.
  o Key terms of the Agreement include rates, term and escalation
  o The Agreement provides Coalspur with up to 12.0 Mtpa of rail 


    allocation and is structured to reflect the production profile of
    Vista
    --  Subsequent to quarter end, the Company announced that its
        largest shareholder, the Highland Park Group ("Highland Park")
        had exercised its option to purchase additional ordinary shares


    in the Company.
  o Highland Park exercised 12,724,669 options at an exercise price of 


    A$0.70 per option, and now owns 153,840,202 ordinary shares which
    represents approximately 24.3% of the ordinary shares currently


outstanding in the Company
  o Holders of a further 669,333 options with an exercise price of 
A$0.70 per option also exercised their options to acquire further 
shares
  o Total funds raised from the exercise of options was A$9,375,801 
--  The Company advised that it will change its financial year end 


        from 30 June to 31 December, commencing December 31, 2012.

Going Forward

The Company is currently focusing on the efforts necessary to commence 
construction on Vista before the second half of 2013. Activities in the coming 
months are expected to include:
    --  Continued pursuit of regulatory approvals which are required to
        commence forest clearing,  site grading, water management
        structures and other construction activities;
    --  Award contracts for civil earthworks and mine pre-development
        work;
    --  Finalising agreements with EIG as well as discussions to secure
        additional investment / funding and off-take arrangements for
        Vista;
    --  Finalising the definitive transportation agreement with CN
        Rail; and
    --  Continued discussions with mining contractors.

The full version of this news release is available on the Company's website at 
www.coalspur.com and SEDAR at www.sedar.com.

Regulatory Disclosures

For further information regarding the Vista Coal Project and Vista Extension, 
including a description of Coalspur's quality assurance program, quality 
control measures, the geology, samples collected and testing procedures in 
respect of the projects, please refer to the technical report titled "Coalspur 
Mines Limited: Updated Resource Estimate for the Vista Coal Project" dated 
September 12, 2012. For further information regarding the Vista South Coal 
Project, including a description of Coalspur's quality assurance program, 
quality control measures, the geology, samples collected and testing 
procedures in respect of the project, please refer to the technical report 
titled "Resource Estimate for the Vista South Coal Property" dated June 25, 
2012. The technical reports for the Vista Coal Project, the Vista South Coal 
Project, and Vista Extension are compliant with National Instrument 43-101 - 
"Standards of Disclosure for Mineral Projects" ("NI 43-101") and are available 
for review on SEDAR at sedar.com.

Competent Person / Qualified Person Statements

The information in this report that relates to Coal Resources on the Vista 
Coal Project and Vista Extension, mining engineering, Recoverable Coal 
Reserves, capital costs, mining operating costs, and economic financial 
analysis, process capital costs and associated infrastructure, and all other 
scientific and technical information in this Report is based on information 
compiled by Mr. David Leslie, who is a Member of the Association of 
Professional Engineers and Geoscientists of Alberta. Mr. Leslie is a full-time 
employee of Coalspur. Mr. Leslie has sufficient experience which is relevant 
to the style of mineralisation and type of deposit under consideration and to 
the activity he is undertaking to qualify as a "Competent Person" as defined 
in the 2004 Edition of the 'Australasian Code for Reporting of Exploration 
Results, Mineral Resources and Ore Reserves' ("JORC Code"), and a "Qualified 
Person" under NI 43-101. Mr. Leslie has approved and consents to the inclusion 
of such information in this report in the form and context in which it appears.

The information in this report that relates to coal quality and process yield 
estimates to derive Marketable Coal Reserves is based on information compiled 
by Mr. Gordon Mudryk, who is a Member of the Association of Professional 
Engineers, Geologists and Geophysicists of Alberta. Mr. Mudryk is a full-time 
employee of Coalspur. Mr. Mudryk has sufficient experience which is relevant 
to the style of mineralisation and type of deposit under consideration and to 
the activity he is undertaking to qualify as a "Competent Person" as defined 
in the 2004 Edition of the JORC Code, and a "Qualified Person" under NI 
43-101. Mr. Mudryk has approved and consents to the inclusion of such 
information in this report in the form and context in which it appears.

The information in this report that relates to Coal Resources on Vista South 
is based on information compiled by Mr. John Innis, who is a Member of the 
Association of Professional Engineers, Geologists and Geophysicists of 
Alberta. Mr. Innis is a full-time employee of Coalspur. Mr. Innis has 
sufficient experience which is relevant to the style of mineralisation and 
type of deposit under consideration and to the activity he is undertaking to 
qualify as a "Competent Person" as defined in the 2004 Edition of the JORC 
Code, and a "Qualified Person" under NI 43-101. Mr. Innis has approved and 
consents to the inclusion of such information in this report in the form and 
context in which it appears.

Forward Looking Statements

This report contains forward-looking statements concerning Coalspur, including 
statements regarding Coalspur's plans for its mineral projects, development 
plans and timing, development and operating costs, production, regulatory 
approvals, exploration and development activities, and other matters. These 
statements relate to analyses and other information that is based on forecasts 
of future results, estimates of amounts not yet determinable and assumptions 
of management. Actual results could differ materially from the conclusions, 
forecasts and projections contained in these forward-looking statements.

Statements concerning Mineral Resource Estimates may also be deemed to 
constitute "forward-looking statements" to the extent that they involve 
estimates of the mineralization that will be encountered if a given property 
is developed. Any statements that express or involve discussions with respect 
to predictions, expectations, beliefs, plans, projections, objectives, 
assumptions or future events or performance (often, but not always, using 
words or phrases such as "expects", "is expected", "anticipates", "plans", 
"projects", "estimates", "assumes", "intends", "strategy", "goals", 
"objectives", "potential" or variations thereof or stating that certain 
actions, events or results "may", "could", "would", "might" or "will" be 
taken, occur or be achieved, or the negative of any of these terms and similar 
expressions) are not statements of historical fact and may be forward-looking 
statements. Forward-looking statements are subject to a variety of known and 
unknown risks, uncertainties and other factors that could cause actual events 
or results to materially differ from those reflected in the forward-looking 
statements, including those referred to in the Company's Annual Information 
under the heading "Description of the Business - Risk Factors", and elsewhere.

Coalspur's forward-looking statements are based on the beliefs, expectations 
and opinions of management as of the date hereof and which Coalspur believes 
are reasonable in the circumstances, but no assurance can be given that these 
expectations will prove to be correct. In making the forward-looking 
statements the Company has applied several material assumptions which may 
prove to be incorrect, including, but not limited to: (1) that all required 
third party approvals will be obtained for the development, construction and 
production of its properties; (2) that additional financing will be available 
on reasonable terms; (3) there being no significant disruptions affecting 
operations, whether due to labour disruptions, supply disruptions, power 
disruptions, damage to equipment or otherwise; (4) permitting, development and 
expansion proceeding on a basis consistent with the Company's current 
expectations; (5) currency exchange rates being approximately consistent with 
current levels; (6) certain price assumptions for coal; (7) production 
forecasts meeting expectations; (8) the accuracy of the Company's current 
mineral resource and reserve estimates; (9) labour and materials costs 
increasing on a basis consistent with the Company's current expectations; and 
(10) assumptions made and judgments used in engineering and geological 
interpretation.

Coalspur disclaims any intention or obligation to update or revise 
forward-looking statements if circumstances or management's beliefs, 
expectations or opinions should change, except as required by law. For the 
reasons set forth above, undue reliance should not be placed on 
forward-looking statements.

Greg Bittar Investor Relations Australasia gbittar@coalspur.com P: + 61 
409 611 744

Chris Borowski Investor Relations North America and Europe 
cborowski@coalspur.com P:+1 403 767 6377 M: +1 403 973 5607

SOURCE: Coalspur Mines Limited

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CO: Coalspur Mines Limited
NI: MNG 

-0- Jan/31/2013 17:22 GMT


 
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