Pennsylvania coal producer Corsa Coal Corp. said July 5 that it is making progress on its previously announced coal asset deal with Quintana Kopper Glo Investment LLC.
Under the requirements of the TSX Venture Exchange, where its stock is listed, Corsa has submitted for review to the exchange a filing statement on the transaction together with a National Instrument 43-101-compliant technical report on Kopper Glo’s material property.
Corsa expects to seek approval of a majority (50%) of its shareholders (by written consent) late in July, once the exchange advises that the filing statement has been accepted for filing. At this time, shareholders holding approximately 50.3% of the currently outstanding shares of Corsa have agreed to vote in favor of the transaction which is sufficient to achieve the required approval.
The transaction is targeted to close by the end of July 2013. Completion of the transaction is subject to a number of conditions, including exchange acceptance and shareholder approval. The transaction cannot close until the required shareholder approval is obtained.
Corsa also announced that, in connection with the Kopper Glo transaction, as well as for personal reasons, Colin Benner has resigned from the Board of Directors of Corsa. Michael Harrison has been appointed as the new Chairman of the Board.
Don Charter, President and CEO stated: “On behalf of management and the entire Board, we thank Colin, both professionally and as a friend, for his significant contribution as the founding Chairman of Corsa. Colin’s experience and guidance have been invaluable to the evolution of the Company.”
Corsa’s primary business is the mining, processing and selling of low-vol metallurgical coal, as well as actively exploring, acquiring and developing resource properties consistent with its coal business. Its primary operations are located in and around Somerset County, Pa., with an existing deep mine in nearby Maryland.
Kopper Glo is a private company formed in 2007 engaged in production and sale of high-Btu, low- and mid-sulfur thermal coal used in power, industrial and specialty applications. Its mines, prep plant and refuse site are all located in close proximity providing for efficient operations. It had sales of 975,000 tons of coal in 2012 with an average cash cost of production (unaudited) of US$56 per ton with EBITDA (unaudited) of US$16.5m and net income of US$6.8m (audited).
Kopper Glo has increased its production consistently from about 500,000 tons in 2008 to its current levels and expects to grow sales to over 1 million tons in 2013. It has a good pipeline of projects for expansion.
Kopper Glo is majority owned by Quintana Energy Partners LP and its affiliated investment funds. Keith Dyke, President of Kopper Glo, heads up a strong management and operational team with significant surface and underground mining experience and expertise.
Quintana Energy Partners LP and its affiliated investment funds were formed by Quintana Capital Group LP, a Cayman Islands exempted limited partnership, to make control-oriented equity investments across the oil and natural gas, coal and power industries. Corbin Robertson Jr., a member of the fund’s investment committee and a resident of Texas, together with his three adult children, control the General Partner of Quintana Energy Partners LP, which directs the fund’s investment activities. In addition, they own over 23 billion tons of coal reserves in the United States, making them the largest private coal owner in the United States. Robertson is also the CEO and Chairman of Natural Resource Partners LP, a publicly traded coal royalty company.