TORONTO,
June 6, 2013 /PRNewswire/ - Corsa
Coal Corp. (TSXV: CSO) ("Corsa" or the "Company") is pleased to
announce that during the second quarter of fiscal 2013, the Company
sold 83,000 tons of clean metallurgical coal bringing its year to
date sales to 119,000 tons. The Company also sold 10,000 tons of
raw metallurgical coal in the first quarter of fiscal 2013. The
Company confirms its stated clean metallurgical coal sales guidance
for fiscal 2013 of approximately 300,000 to 320,000 tons and first
quarter 2014 of approximately 45,000 to 60,000 tons.
Production from the Company's Casselman underground mine was approximately
116,000 ROM tons for the quarter with the mine achieving record
production of 45,000 ROM tons in May. The Company has successfully
commenced highwall mining operations at its Hemminger surface mine
and has commenced development at its Ankeny surface mine with
initial production expected this month.
The Company expects to post the required bond
for its Acosta Deep underground mine in the Middle Kittanning seam
this month with the final permit expected to be issued shortly
thereafter. In addition, the Company expects to post the
required bonds for its Ash and Hamer surface mines this month with
the final permits expected shortly thereafter.
Don Charter, CEO
stated: "We are very pleased with the performance of the
Casselman mine and the
commencement of the highwall mining operations at Hemminger. The
Company continues to make positive strides in its mining costs with
costs for the quarter expected to be lower than last quarter as a
result of the performance at Casselman. With the completion of the
permitting of the Acosta Deep project imminent and the ability to
quickly expand Casselman, the
Company is very well positioned moving forward."
The Company continues to actively market its
high quality low volatile metallurgical coal and is in discussions
with domestic and international buyers. The Company continues to
match production to actual sales and does not have unnecessary
inventories of unsold coal. While the Company remains optimistic
that further sales will be achieved, it only reports future sales
guidance based on currently contracted volumes. The Company has
continued to be successful in achieving sales as a result of the
superior quality of its low volatile metallurgical coal
product.
Update on the Quintana Transaction
A summary of the transaction with Quintana
Kopper Glo Investment, LLC (the "Transaction") and of related
documents is set out in Corsa's material change report dated
March 28, 2013, available on
sedar.com.
In accordance with the requirements of the TSX
Venture Exchange (the "Exchange"), Corsa will be submitting for
review to the Exchange a Filing Statement in respect of the
Transaction. The Filing Statement requires the preparation of
a NI 43-101 compliant technical report on Kopper Glo's material
property and preparation of historical and pro forma financial
statements in accordance with requirements of Canadian Securities
Administrators. Corsa expects to submit a draft of the Filing
Statement to the Exchange for its review in June and to seek
approval of a majority (50%) of its shareholders (by written
consent) in July. At this time shareholders holding approximately
50.3 per cent of the currently outstanding shares of the Company
have agreed to vote in favour of the Transaction which is
sufficient to achieve the required approval. The Transaction is
targeted to close by the end of July
2013.
Completion of the Transaction is subject to a
number of conditions, including Exchange acceptance and
disinterested shareholder approval. The Transaction cannot
close until the required shareholder approval is obtained. There
can be no assurance that the Transaction will be completed as
proposed or at all. Investors are cautioned that, except as
disclosed in the Filing Statement to be prepared in connection with
the Transaction, any information released or received with respect
to the Transaction may not be accurate or complete and should not
be relied upon. Trading in the securities of Corsa should be
considered highly speculative.
The Exchange has in no way passed upon the
merits of the proposed transaction and has neither approved nor
disapproved the contents of this press release.
Caution
The estimated coal production, purchases, sales
and processing of coal disclosed in this press release are
considered to be forward looking information. Readers are cautioned
that actual results may vary from this forward looking information.
There can be no assurance as to when or if the required permits
will be issued. Actual production, sales, shipments, purchases,
total cash costs and sales and processing costs are subject to
variation based on a number of risks and other factors referred to
under the heading "Forward-Looking Statements" as well as actual
demand and sales orders received. Costs will be impacted by
production levels actually achieved.
Information about Corsa
Corsa's main operating subsidiaries are Wilson
Creek Energy LLC and Maryland Energy Resources LLC based in
Somerset County,
Pennsylvania. Its primary business is the mining,
processing and selling of low volatile metallurgical coal, as well
as actively exploring, acquiring
and developing resource
properties consistent with its coal business.
Forward-Looking Statements
Certain information set forth in this press
release contains "forward-looking statements" and "forward-looking
information" under applicable securities laws. Except for
statements of historical fact, certain information contained herein
constitutes forward-looking statements which include management's
assessment of future plans and operations and are based on current
internal expectations, estimates, projections, assumptions and
beliefs, which may prove to be incorrect. Some of the
forward-looking statements may be identified by words such as
"estimates", "expects" "anticipates", "believes", "projects",
"plans", "outlook", "capacity" and similar expressions. These
statements are not guarantees of future performance and undue
reliance should not be placed on them. Such forward-looking
statements necessarily involve known and unknown risks and
uncertainties, which may cause the Company's actual performance and
financial results in future periods to differ materially from any
projections of future performance or results expressed or implied
by such forward-looking statements. These risks and uncertainties
include, but are not limited to: risks that the actual production
or sales for the 2013 fiscal year will be less than projected
production or sales for these periods; risks that the prices for
coal sales will be less than projected or expected; liabilities
inherent in coal mine development and production including
restarting idled mines; geological, mining and processing technical
problems; inability to obtain required mine licenses, mine permits
and regulatory approvals or renewals required in connection with
the mining and processing of coal; risks that the Company's coal
preparation plant will not operate at production capacity during
the relevant period, unexpected changes in coal quality and
specification; variations in the coal mine or coal preparation
plant recovery rates; dependence on third party coal transportation
systems; competition for, among other things, capital, acquisitions
of reserves, undeveloped lands and skilled personnel; incorrect
assessments of the value of acquisitions; changes in commodity
prices and exchange rates; changes in the regulations with respect
to the use, mining and processing of coal; changes in regulations
on refuse disposal; the effects of competition and pricing
pressures in the coal market; the oversupply of, or lack of demand
for, coal; inability of management to secure coal sales or third
party purchase contracts; currency and interest rate fluctuations;
various events which could disrupt operations and/or the
transportation of coal products, including labour stoppages and
severe weather conditions; the demand for and availability of rail,
port and other transportation services; the ability to purchase
third party coal for processing and delivery under purchase
agreements; risk that the required approvals of for the Transaction
will not be obtained, risk that the Transaction will not be
completed or completed by the anticipated date and management's
ability to anticipate and manage the foregoing factors and risks.
The forward-looking statements and information contained in this
press release are based on certain assumptions regarding, among
other things, future prices for coal; future currency and exchange
rates; the Company's ability to generate sufficient cash flow from
operations and access capital markets to meet its future
obligations; the regulatory framework representing royalties, taxes
and environmental matters where the Company conducts business; coal
production levels; and the Company's ability to retain qualified
staff and equipment in a cost-efficient manner to meet its demand.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. The
reader is cautioned not to place undue reliance on forward-looking
statements. The Company does not undertake to update any of the
forward-looking statements contained in this press release unless
required by law. The statements as to the Company's capacity to
produce coal are no assurance that it will achieve these levels of
production or that it will be able to achieve these sales
levels.
The TSX Venture Exchange has neither approved nor
disapproved the contents of this press release. Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Corsa Coal Corp.