Well the press release is a little late this information has been on the blogs for the last couple of days and the Pass Herald facebook site since Saturday but never the less still good news. For more on this story John Pundyk wrote an excellent article available in both the Pass Herald and the Elk Valley Herald.
Riversdale Resources Limited Enters Into Agreement to Acquire Coking Coal Development Portfolio in Canada
Riversdale Resources Limited, a public unlisted entity based in Sydney, Australia, has entered into an agreement to acquire a portfolio of coal assets from Devon Energy and Consol Energy located in the Crowsnest Pass area of southwest Alberta, Canada.
The portfolio, comprising over 35,000 acres in total, includes the Grassy Mountain Project located near the towns of Blairmore and Coleman and adjacent to a large capacity rail system already established for coal transport to the existing west coast ports of Westshore Terminal near Vancouver and Ridley near Prince Rupert Sound. Grassy Mountain is an advanced project that has been the subject of substantial exploration and feasibility work including approximately 364 drill holes, two trial pits and a 54,000 tonne bulk sample. Currently Grassy Mountain has a Canadian 43-101 resource of 192 million tonnes and a reserve of 55 million tonnes although Riversdale sees the potential to expand this further. Additionally, Grassy Mountain is located in a Category 4 zone under the Alberta Coal Development Policy.
A earlier feasibility study for Grassy Mountain outlined a open pit development plan to produce approximately 2 million tonnes per annum of both metallurgical and thermal coal over a 28 year life with moderate upfront capital and an FOB cash cost for the first 12 years of US$85 – US$90 per tonne. Riversdale has been working with Norwest Corporation from Calgary, McElroy Bryan from Australia and two recognised Australian based coal quality consultants in undertaking its review of the portfolio. As a result, Riversdale has commenced work to evaluate the potential for a 4 million tonne per annum mine producing primarily a hard coking coal with a secondary PCI product. Riversdale believes such a project will be possible through the use of modern coal mining and washing techniques which have advanced significantly since the earlier feasibility work.
In addition to Grassy Mountain Riversdale has acquired the Bellevue, Adanac and Lynx coal exploration leases which currently contain an additional 160 million tonnes of estimated resources and an extensive package of freehold land accumulated by the vendors over the past 30 years. The portfolio provides Riversdale an exciting opportunity to look at multiple developments in the region which has a long history of coal mining.
Riversdale has entered into an agreement to acquire the coal properties and freehold land assets for a total of US$ 49.5 million (A$ 47.6 million) payable by the end of June 2013. Of the total amount, approximately US$35 million (A$ 33.6 million) is attributable to the Grassy Mountain Project.
The Chairman of Riversdale, Michael O'Keeffe stated "the acquisition of the Crowsnest Pass assets concludes an outstanding first year of exploration and development for our company with a targeted program at our Chickaloon project in Alaska identifying a number of promising coking coal seams. The Crowsnest Pass assets will propel Riversdale into becoming a major force in high quality metallurgical coal production from multiple assets.”
Crowsnest Pass Mayor Bruce Decoux is thrilled with today’s announcement. “One of this Council’s priorities has been to broaden our economic base and strengthen our local economy.” The Municipality’s hard work with Riversdale is certain to generate great economic spin off for our community and region,” says Decoux
Over the last few months Crowsnest Pass Mayor, Council and Administration have been working to support Riversdale and to ensure confidence in the strength and vibrancy of our community. “We are confident that the support we provided to Riversdale helped pave the way for this initiative to come to fruition” said Decoux. “We are excited that the Crowsnest Pass will soon be home to a highly reputable international coal mining group and that all citizens in our community will reap benefits,” added Decoux.
Background on Riversdale
Riversdale is an Australian public unlisted company with approximately 70 shareholders. The company was created by the former senior management of Riversdale Mining Limited, an ASX company acquired by Rio Tinto Limited in 2011. Riversdale currently has a 10 year lease over the Chickaloon Coking Coal Project in Alaska and is looking to develop a significant steel making materials business with a focus on high grade metallurgical coal in stable sovereign environments.
The board and senior management of Riversdale comprises:
Michael O'Keeffe (Chairman) - previously Chairman of Riversdale Mining Limited and former Managing Director of Glencore Australia
Steve Mallyon (Managing Director) - previously Managing Director of Riversdale Mining Limited and former Managing Director of RBC Capital Markets Australia
Gary Lawler (Non Executive Director) - former Director of Riversdale Mining Limited and Senior M&A Partner of Ashurst
Tony Redman (Non Executive Director) - former Director of Riversdale Mining Limited and former Chairman of Anglo American Coal
Anthony Martin (Chief Financial Officer) - former Riversdale Mining Limitada Country Manager (Mozambique)
Russell Dann (President, Riversdale North America) - former Regional Director of Queensland Government Mines and Energy Agency)
Steve Mallyon. Anthony Martin
Managing Director Chief Financial Officer
A media availability is scheduled for Tuesday, January 8th between 10 am and 12 noon at the Municipal Administrative offices. Mayor Bruce Decoux will be available to speak on this announcement.
Steve Mallyon from Riversdale Resources will be available to speak to media via telephone on January 8th between 2 pm and 5 pm, mountain standard time at +61 407 464 529.
The Municipality will be hosting a welcoming reception in early February at which time Riversdale Resources representative will be in attendance and available to speak with media.