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.