Coalspur Mines Limited has entered into an agreement with a syndicate of agents led by Haywood Securities Inc., BMO Capital Markets and RBC Capital Markets under which the Agents have agreed to place up to 24,000,000 ordinary shares of the Company at an issue price of C$1.85 per Ordinary Share for gross proceeds to the Company of up to C$44.4 million.

The Company also intends to raise a further C$11.1 million (before costs) from a private placement of 6,000,000 ordinary shares at C$1.85 each. The Private Placement is being made to the Highland Park Group, a strategic shareholder of the Company.

Commenting on the capital raising, Mr Gene Wusaty, Managing Director and CEO said, “We recently announced the commencement of our Bankable Feasibility Study at Vista, which is the key final phase before construction commences. The funding allows us to bring forward a number of major activities that have the potential to greatly enhance the production profile and value of the Vista project, including additional development drilling at Vista and an accelerated drilling program at Vista South.”

“We are very excited to have Haywood, BMO and RBC all taking lead roles in our first placement following our TSX listing late last year. Combined with the emphasis on expanding our retail investor base as part of the Public Offering, the Company is in an excellent position to further enhance our profile in the North American investment community.”

Highlights:

• Major Canadian brokers Haywood, BMO and RBC engaged as lead agents for a Public Offering, all of which have a large retail and institutional client base in North America

• The Public Offering will greatly enhance the Company’s investor base and exposure to North American capital markets, with a substantial component being placed to Canadian retail investors

• The Public Offering will raise C$44.4 million. A further C$11.1 million will be raised by way of a Private Placement to the Highland Park Group, a current strategic shareholder

• Funds raised will be used to fund the Company’s extensive activities until completion of the recently announced BFS including: 

1. accelerate development activities at the Vista Coal Project
2. bring forward activities to enhance the production profile at Vista
3. extensive exploration drilling program at Vista South to increase resource base

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