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Sprott Resource Corp. Announces US$33.4 Million Investment in Corsa Coal Corp. to Fund Strategic Acquisition of PBS Coals Ltd.
TORONTO , July 15, 2014 /CNW/ - Sprott Resource Corp. ("SRC" or "the Company") (TSX: SCP...
About this update from Winchester Equity Corporation
[{"type":"text","content":"\n\n\nTORONTO, July 15, 2014 /CNW/ - Sprott Resource Corp. (\"SRC\" or \"the\n Company\") (TSX: SCP) announced today that it has entered into an\n agreement to invest US$33.4 million for 19.9%1 of the outstanding shares of Corsa Coal Corp. (\"Corsa\") (TSX-V: CSO).\n SRC has agreed to purchase 236,963,302 Corsa shares, at a price of\n C$0.15 per share, upon the completion of Corsa's US$60 million\n acquisition of metallurgical coal producer PBS Coals Ltd. (\"PBS\n Coals\"). SRC previously invested in PBS coals in 2007 before it was\n acquired by OAO Severstal in 2008.\n\n\n\"This transaction has the potential to create tremendous value for our\n shareholders while providing the added benefit of diversifying SRC's\n investment portfolio,\" said Steve Yuzpe, President and Chief Executive\n Officer of SRC. \"We are excited to be involved in reacquiring the PBS\n Coals assets and we believe that Corsa has the management team and\n experience necessary to maximize their value.\"\n\n\nOther key investors in Corsa include Quintana Capital Group, an\n established energy investor with more than US$950 million committed to\n the sector; and the Lundin Group, an internationally recognized group\n of public companies with investments in the mining and energy sectors.\n\n\n\"We are pleased to be investing alongside strong partners in Sprott\n Resource Corp. and the Lundin Group, both of which have long histories\n and outstanding track records investing in the natural resource\n sector,\" added Corbin Robertson III, a member of the Board of Quintana\n Capital Group and Chairman of Corsa.\n\n\nMetallurgical coal's main industrial use is the production of steel.\n Following the completion of the transaction, Corsa's strategy is to\n become primarily a metallurgical coal producer. PBS Coals has two\n modern preparation plants and produces metallurgical coal from three\n active deep mines located in Somerset County, Pennsylvania. Corsa's two\n principal operating assets are its Wilson Creek metallurgical coal\n mines in Somerset, Pennsylvania and its Kopper Glo thermal and\n industrial coal mines in Knoxville, Tennessee.\n\n\n\"With the completion of this acquisition, Corsa and PBS Coals together\n will represent a significant player in the U.S. low volatile\n metallurgical coal market with excellent growth potential,\" said George\n Dethlefsen,...