NEW YORK Canadian coal
producer Corsa Coal Corp. has signed a binding agreement that
will give Quintana Energy Partners LP a controlling stake in
In addition to securing a
56-percent stake in Corsa Coal for $40 million, Houston-based
Quintana will hold a redeemable 25-percent interest in Wilson
Creek Energy LLC, Corsas Somerset, Pa.-based
Under the agreement, Corsa Coal
will continue to operate under the Corsa name from its
headquarters in Toronto and will assume ownership of Quintana
Kopper Glo Investment LLC, Quintanas Knoxville,
Tenn.-based subsidiary that operates coal mines.
A key part of the deal is the
repayment of $25 million Corsa Coal owes to Toronto-based
Sprott Resource Lending Corp.
"This is a major step forward
for Corsa in its objective of establishing itself as a
significant new United States-based supplier of metallurgical
coal into the world market," Corsa Coal president and chief
executive officer Don Charter said. "With the new capital
provided, reduction in debt, immediate cash flow and quality
coaltogether with the involvement and support of
Quintana, with its experience and expertise in coalCorsa
is well-positioned to continue with its sales and production
growth and the development of its mining projects."
"We believe this transaction
positions Corsa to execute on its long-term growth plan to be a
large producer of some of the highest-quality coal in the
world," Quintana managing director George Dethlefsen said.
The deal, which is subject to
approval by the Toronto Stock Exchange and acceptance by Corsa
Coal shareholders, is expected to be completed by July 1.
A version of this article was first published by AMM sister
publication Steel First.