EDMONTON and CALGARY, Nov. 9,
2011 /PRNewswire/ - CN (TSX: CNR) (NYSE: CNI) and Coalspur
Mines Limited (Coalspur) (ASX: CPL) (TSX: CPT) announced today that
they have signed a memorandum of understanding (MOU) under which
they will develop a high-quality logistics supply chain to
transport export thermal coal from Coalspur's Vista Coal Project
(Vista) near Hinton, Alta., to
Western Canadian ports starting in 2015.
The MOU establishes the framework for an agreement that will
accommodate Coalspur's plan to commence coal production in 2015 at
a rate of approximately 2.5 million tonnes per annum (Mtpa), rising
to about 11.2 Mtpa by 2019.
CN will transport Vista production to west coast ports including
Ridley Terminals Inc. (RTI), located at the Port of Prince Rupert, B.C. Coalspur recently signed a
throughput agreement with RTI to handle up to 8.5 Mtpa of export
coal at the terminal.
CN and Coalspur will jointly design and build a rail siding at
the Vista site capable of handling the loading of 175-car unit
trains at a full capacity of gross weight on rail of 286,000 pounds
per car.
The two parties expect to negotiate a definitive transportation
agreement in 2012, following completion of Coalspur's ongoing
Bankable Feasibility Study on Vista.
Jean-Jacques Ruest, CN executive vice-president and chief
marketing officer, said: "CN will work closely with Coalspur to
build an efficient and effective logistics process for its export
coal. CN has developed a comprehensive, end-to-end supply chain
strategy to manage coal flows from mines to west coast terminals.
This approach, coupled with strong customer collaboration, will
help Coalspur maximize sales opportunities in global markets."
Gene Wusaty, managing director
and chief executive officer of Coalspur, said: "Rail is a critical
link in connecting Vista's coal to international markets and an
agreement with North America's
most efficient rail carrier will help ensure a reliable and
effective supply chain."
About Coalspur
Coalspur Mines Limited is a coal exploration and development
company with more than 33,200 hectares of coal exploration leases
located within the Hinton region
of Alberta, Canada. Coalspur's
flagship coal project is the Vista Coal Project, which has the
potential to be the largest export thermal coal mine in
Canada. Coalspur's goal is to
serve growing coal demand in Asian Pacific Rim countries, including
China, Japan and Korea.
Regulatory Disclosures
For further information regarding the Vista Coal Project and Vista
South Project, 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 on the Vista Coal Project titled
"Vista Coal Project Prefeasibility Study" dated January 25, 2011 and the technical report on the
Vista South Project titled "Resource Estimate for the Vista South
Coal Property" dated December 15,
2010, which 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 news release that relates the Bankable
Feasibility Study on the Vista Coal Project is based on information
compiled by Mr. Murray Lytle, who is
a Member of the Association of Professional Engineers, Geologists
and Geophysicists of Alberta. Mr.
Lytle is a full-time employee of Snowden Mining Industry
Consultants Inc., who are consultants to Coalspur. Mr. Lytle 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. Lytle has
approved and consents to the inclusion of such information in this
news release in the form and context in which it appears.
All other scientific and technical information in this news
release is based on information compiled by Mr. Eugene Wusaty, who is a Member of the
Association of Professional Engineers and Geoscientists of
Alberta. Mr. Wusaty is a full-time
employee of Coalspur. Mr. Wusaty has sufficient experience
which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a "Competent Person" as defined in the
JORC Code, and a "Qualified Person" under NI 43-101. Mr. Wusaty has
approved and consents to the inclusion of such information in this
news release in the form and context in which it appears.
Forward Looking Statements
This news release contains 'forward-looking information' that is
based on Coalspur's expectations, estimates and projections as of
the date on which the statements were made. This
forward-looking information includes, among other things,
statements with respect to the development of Vista, Coalspur's
Pre-Feasibility Study and Bankable Feasibility Study, drilling
programs, time lines and completion dates, permits and approvals,
business strategy, plans, development, objectives, performance,
outlook, growth, cash flow, projections, targets and expectations,
mineral reserves and resources, studies, results of exploration and
related expenses. Generally, this forward-looking information
can be identified by the use of forward-looking terminology such as
'expect', 'potential', 'outlook', 'anticipate', 'project',
'target', 'likely', 'believe', 'estimate', 'intend', 'may',
'would', 'could', 'should', 'scheduled', 'will', 'plan',
'forecast', "evolve" or variations of such terms and similar
expressions. Persons reading this news release are cautioned that
such statements are only predictions, and that Coalspur's actual
future results or performance may be materially different.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the Company's
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking information. Such factors include, without
limitation, inherent uncertainties and risks associated with
mineral exploration; uncertainties related to the availability of
future financing necessary to undertake activities on the Company's
properties; uncertainties related to general economic conditions;
uncertainties related to global financial conditions; risks related
to the integration of businesses and assets acquired by the
Company; risks associated with the Company having no history of
earnings or production revenue; uncertainties related to the
possible recalculation of, or reduction in, the Company's mineral
reserves and resources; uncertainties related to the outcome of
studies to be undertaken by the Company; uncertainties relating to
fluctuations in coal price; the risk that the Company's title to
its properties could be challenged; risks related to the Company's
ability to attract and retain qualified personnel; uncertainties
related to the requirement for ministerial approval for a change of
control of the Company; risks relating to consultation with the
public and aboriginal groups; uncertainties related to the
competitiveness of the mineral resource industry; risks associated
with the Company being subject to government regulation, including
changes in regulation; risks associated with the Company being
subject to environmental laws and regulations, including a change
in regulation; risks associated with the Company's need for
governmental licenses, permits and approvals; uninsured risks and
hazards; risks associated with fluctuations in foreign exchange
rates; risks related to default by joint venture parties,
contractors and agents; inherent risks associated with litigation;
risks associated with potential conflicts of interest; risks
related to effecting service of process on directors resident in
foreign countries; uncertainties related to the Company's limited
operating history; risks related to the Company's lack of a
dividend history; risks relating to short term investments; and
uncertainties related to fluctuations in the Company's share price.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended.
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) there being no significant
disruptions affecting operations, whether due to labour
disruptions, supply disruptions, power disruptions, damage to
equipment or otherwise; (3) permitting, development and expansion
proceeding on a basis consistent with the Company's current
expectations; (4) currency exchange rates being approximately
consistent with current levels; (5) certain price assumptions for
coal; (6) production forecasts meeting expectations; (7) the
accuracy of the Company's current mineral resource and reserve
estimates; (8) labour and materials costs increasing on a basis
consistent with the Company's current expectations; (9) that any
additional required financing will be available on reasonable
terms; and (10) assumptions made and judgments used in engineering
and geological interpretation.
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.
Accordingly, readers should not place undue reliance on forward
looking statements.
The Company disclaims any intent or obligation to update or
revise any forward-looking statements whether as a result of new
information, estimates or options, future events or results or
otherwise, unless required to do so by law.
About CN
CN - Canadian National Railway Company and its operating railway
subsidiaries - spans Canada and
mid-America, from the Atlantic and Pacific oceans to the
Gulf of Mexico, serving the ports
of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New
Orleans, and Mobile, Ala.,
and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth,
Minn./Superior, Wis.,
Green Bay, Wis., Minneapolis/St. Paul, Memphis, and Jackson, Miss., with connections to all points
in North America. For more
information on CN, visit the company's website at www.cn.ca.
Certain information included in this news release constitutes
"forward-looking statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and under Canadian securities laws.
CN cautions that, by their nature, these forward-looking statements
involve risks, uncertainties and assumptions, including with
respect to the negotiation and execution of a definitive
transportation agreement with Coalspur and the other assumptions
and risks detailed above under the Coalspur Forward Looking
Statements. CN cautions that its assumptions may not
materialize and that current economic conditions render such
assumptions, although reasonable at the time they were made,
subject to greater uncertainty. Such forward-looking statements are
not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results of performance of CN or the rail industry to be materially
different from the outlook or any future results or performance
implied by such statements. Important factors that could affect the
above forward-looking statements include, but are not limited to,
the effects of general economic and business conditions, industry
competition, inflation, currency and interest rate fluctuations,
changes in fuel prices, legislative and/or regulatory developments,
compliance with environmental laws and regulations, actions by
regulators, various events which could disrupt operations,
including natural events such as severe weather, droughts, floods
and earthquakes, labor negotiations and disruptions, environmental
claims, uncertainties of investigations, proceedings or other types
of claims and litigation, risks and liabilities arising from
derailments, and other risks detailed from time to time in reports
filed by CN with securities regulators in Canada and the
United States. Reference should be made to "Management's
Discussion and Analysis" in CN's annual and interim reports, Annual
Information Form and Form 40-F filed with Canadian and U.S.
securities regulators, available on CN's website, for a summary of
major risks.
CN assumes no obligation to update or revise
forward-looking statements to reflect future events, changes in
circumstances, or changes in beliefs, unless required by applicable
Canadian securities laws. In the event CN does update any
forward-looking statement, no inference should be made that CN will
make additional updates with respect to that statement, related
maters, or any other forward-looking statement.
SOURCE CN