Key Point"Coalspur is keen to raise funds by selling down part...

Key Point

"Coalspur is keen to raise funds by selling down part of its equity in the 1.23 Canadian dollars (US$1.23 billion) project, which aims to produce 11.2 million tons of thermal coal used to generate power. Interested parties are also being offered rights to take and market coal volumes equivalent to the size of the equity stake in Vista, located by a railway near the coal-mining town of Hinton.

Calgary-based Coalspur, which has a market value of 974 million Australian dollars (US$1.04 billion), is flexible on the deal structure but is aiming to retain majority ownership in Vista ahead of construction of the mine starting in 2013, one of the persons said."


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At what price do you sell a portion of vista? Well we do have a recently completed BFS which backs an NPV on the project of $2.1bn CAD.

It would be nice to sell say 20% for $400m CAD. Our share of peak CAPEX required would be about $720m, leaving $320m debt financed?

Wonder what that would do to the shareprice!?

All IMHO only


Good luck to holders.