Natasa Mining Ltd. said in a Feb. 24 filing with the London Stock Exchange that its Alberta Coal Corp. subsidiary is working on development of the Fox Creek coal reserve in Alberta, Canada.
Alberta Coal is seeking to raise £30 million and, through an IPO, to be admitted to trading on the Main Market of the London Stock Exchange under ticker symbol ALB. Strand Hanson Ltd. has been appointed the financial advisers to the IPO and HD Capital Partners LLP and GMP Securities Europe LLP have been appointed joint brokers and joint bookrunners to the company.
The Fox Creek Coal Project constitutes six coal leases, covering an area of 22,688 hectares, which are held through the company’s wholly owned subsidiary, Fox Creek Coal Inc. Historically, extensive drilling has been completed over the lease area by previous operators including Shell and Esso, which has enabled identification of a sub-bituminous C coal resource of about 777 million measured and indicated tonnes.
Funds to be raised will be applied to further investigate and develop the Fox Creek project, with the intention of progressing a bankable feasibility study on the project, planned to be delivered within 24 months of the IPO, and to provide additional general working capital for the company. There are a number of possible longer term development opportunities available to the company, each of which will be examined more closely as part of the feasibility study.
Alberta Coal is chaired by Chris Kyriakou, who has overseen a number of mines from exploration through to project finance and commissioning, and who has extensive mining experience in Australia, Canada, Africa and Mexico. Alberta Coal’s chief executive is John Hogg, who was previously chief executive of Canada’s Western Coal, where he was directly responsible for bringing a number of coal mines into production.
Kyriakou said: “We are confident that the experienced management team that we have assembled, combined with the highly attractive project fundamentals of location and infrastructure render this project an extremely exciting one for investors and we look forward to bringing it to market.”
Natasa Mining is already listed on the AIM segment of the London Stock Exchange. Natasa had announced in August 2011 that it had acquired the Fox Creek coal reserves from Alter NRG Corp. for a consideration of US$5m. Alter NRG once planned to build a coal gasification plant on the site, but gave that project up in a reorganization of corporate priorities.