TORONTO, March 29, 2011 /PRNewswire/ -- Pacific Coal Resources Ltd. (TSXV: PAK, formerly VGR) is pleased to announce that it has exercised its option to acquire the La Divisa Mine, located in the La Jagua de Ibirico coalfield in the department of Cesar, Colombia.
Pacific Coal S.A., a wholly-owned subsidiary of the Company, currently owns a 14% interest in Chianto S.A., which owns 100% of C.I. Norcarbon S.A, (of which 16.66% is held in trust by Aleman Cordero Galindo & Lee Trust (Panama)). C.I Norcarbon S.A is title owner of 100% of the mining rights for the La Divisa Mine (Cerro Largo). On December 16, 2010, Pacific Coal S.A., a wholly owned subsidiary of the Company, entered into an option agreement for the irrevocable and exclusive option to acquire the remaining 86% of Chianto S.A. for cash consideration of US$75 million from Valle Eden Group Inc. and Sunny Isles Holding S.A. This option agreement was exercised and as of today, Pacific Coal will retain a 100% interest in Chianto S.A., and full title to the La Divisa Mine property and operations.
The La Divisa Mine is located in La Jagua de Ibirico, a municipality in the department of Cesar, Colombia. There are currently two sub-contract open pit mine operations mining coal on the concession. Production at the mine has been over 300,000 tonnes of thermal coal in 2010 and has a forecasted production of 600,000 tonnes of thermal coal for 2011. Underground mining operations have terminated and the mine will be operated as an open pit mine. Further information can be found in the Technical Report for the La Divisa Mine filed on SEDAR at www.sedar.com.
Pacific Coal S.A. and Xira Investment Inc., a wholly-owned subsidiary of Pacific Coal, S.A., recently acquired from Masering SAS the mining operation agreement for part of the La Divisa Mine (Cerra Largo), namely the North Pit, which grants rights over a portion of the coal production for the mine for cash consideration of US$14,165,644. This mine is fully permitted and the Pacific Coal strategy is to consolidate mining operations into a single mining plan and elevate production to 1.0 to 1.2 million tonnes per annum.
The Company has also entered into a memorandum of understanding on March 24, 2011 with Prospecta Hydrocarbons Corporation ("PHC") pursuant to which the Company has mandated PHC to evaluate the following concession areas located in the Catatumbo area: HCO-152 and HAD-151. PHC is a Panamanian company, exclusively dedicated to identifying and sourcing exploration/producing assets in the oil and gas/mining sector in Latin America specializing in identifying top quality prospects and undertaking due diligence to offer its clients utmost assistance for asset acquisition, mergers and divestitures. The Catatumbo area is highly prospective and a key part of the exploration strategy for Pacific Coal.
The Company further wishes to announce the appointment of Giovanni Pizarro as the Company's Chief Operating Officer. Mr. Pizarro has a degree in Civil Engineering. He has over 23 years of experience in the mining industry and specifically in coal mining, holding senior positions in logistics and mine management. He spent over 8 years with Carbones del Caribe (Argos) and has a breadth of experience in managing integrated mining projects, coal processing and handling facilities, quality control and port operations in Colombia.
In addition, in connection with the Company's recently completed reverse take-over transaction (see news release of the Company dated March 11, 2011), the Company's Board of Directors has appointed KPMG LLP as the new auditors of the Company. The former auditors, D&H Group LLP, resigned at the request of the Company.
About Pacific Coal Resources Ltd.
Pacific Coal Resources Ltd. is a Canadian-based mining company focused on coal, coking coal, asphalt and asphaltite exploration, development and production from prospective producing, development-stage and exploration-stage properties in Colombia. The Company has acquired or entered into agreements to acquire various interests in several operating coal mines and projects, representing a substantive coal and asphaltite exploration and production area throughout Colombia. Pacific Coal is committed to implementing its exploration and development strategy with a comprehensive environment, safety and community program, meeting international standards of best practice.
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.
The potential quantity is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
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SOURCE Pacific Coal Resources Ltd.