TORONTO,
Oct. 28, 2013 /CNW/ - Pacific Coal
Resources Ltd. (TSXV: PAK) is pleased to announce that it has
revised its previously disclosed plans (please see the Company's
press release dated June 28, 2013) in
respect of the port concession it owns at Barranquilla (Concession
Contract No. 3-003 7-2008) (the "Port Concession"). The Company has
signed two share purchase and sale agreements in respect of the
sale of 26,795 shares of Alamota Holdings, the subsidiary
of the Company that indirectly holds the Port Concession, whereby
PAK sold approximately 53.59% of the Alamota shares for a total
purchase price on these two transactions of approximately
US$17 million. A third share
purchase and sale agreement in respect of the sale of approximately
an additional 37.83% of the Alamota shares is committed and
expected to be signed towards the beginning of November 2013 for a total purchase price of an
additional US$17 million.
The transaction is a "related party transaction"
for the purposes of Multilateral Instrument 61-101 - Protection
of Minority Share Holders in Special Transactions ("MI 61-101")
as one of the purchasers, that acquired approximately 37.83% of the
shares of Alamota, is a wholly owned subsidiary of Blue Pacific
Assets Corp., a principal shareholder of the Company.
While previously the related party subsidiary of
Blue Pacific was acquiring a 50% interest, under the revised
transaction, the subsidiary is acquiring an approximately 37.83% of
the shares. The Company intends to rely on an exemption from the
requirement to obtain a formal valuation and will be relying on the
minority shareholder approval as prescribed by MI 61-101 in respect
of the transaction obtained at a special meeting of shareholders
held on August 12, 2013.
Hernan Martinez,
Executive Chairman, said "We are delighted to see the Company's
strategic plan take form as this port sale enables the Company to
not only further strengthen its focus on its core business, but
also provides the Company with cash to pay off outstanding short
term debt."
The transaction is subject to TSXV approval and
is expected to close in the last quarter of 2013.
Other Updates
Coke processing plant rental
agreement
On August 1, 2013,
an agreement was signed with C.I. Milpa S.A. for the rental of the
Company's coke processing plant and related equipment for
approximately $0.4 million. The
duration of the contract will be 17 months, ending December 31, 2014. Over the course of the
rental contract, the Company anticipates finalizing a long-term
strategy for coke operations, with the current plan to re-start
production in 2015.
La Caypa underground mining
In September 2013,
the Company signed a contract with Carbomec de Colombia S.A.S.
("Carbomec"), a Colombian subsidiary of the Spanish company
Mecanizaciones Carboníferas y Servicios S.A., who has more
than 25 years of experience in underground mining operations.
Through the aforementioned contract, Carbomec will first complete a
pilot project of approximately 40,000 tonnes of coal, with the
objective of contracting all of the underground mining if the pilot
project is successful. The Company anticipates that
preliminary work will begin in the fourth quarter of 2013 and,
assuming successful completion of the pilot project, full operation
to begin in 2014.
About Pacific Coal Resources Ltd.
Pacific Coal Resources Ltd. is a
Canadian-based mining company engaged in the acquisition,
exploration and production of coal and coal-related assets from
properties located in Colombia.
The Company's common shares are listed on the TSX Venture Exchange
and trade under the symbol "PAK".
Forward Looking Information:
This news release contains "forward-looking
information", which may include, but is not limited to, statements
with respect to the future financial or operating performance of
the Company and its projects. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or believes" or
variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Pacific Coal to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements.
Forward-looking statements contained herein are made as of the date
of this press release and Pacific Coal disclaim, other than as
required by law, any obligation to update any forward-looking
statements whether as a result of new information, results, future
events, circumstances, or if management's estimates or opinions
should change, or otherwise. 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, the reader is
cautioned not to place undue reliance on forward-looking
statements.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
SOURCE Pacific Coal Resources Ltd.