(EnergyAsia, October 13 2011, Thursday) — Australia’s Xstrata Coal said it has agreed to acquire the entire Lossan metallurgical coal deposit in Canada from Cline Mining Corporation for C$40 million. (US$1=C$1.05). The acquisition was completed yesterday.
Located in the Peace River Coalfield of north eastern British Columbia province, Lossan is surrounded by a group of licences recently acquired by Xstrata Coal through the acquisition of First Coal Corporation in early August 2011.
Xtrata Coal said Lossan has an NI 43-101 compliant resource of 240 million tonnes, with 186 million tonnes being in the measured and indicated categories. Lossan covers an area of approximately 3,800 hectares, which lifts Xstrata Coal’s total tenure in the Peace River Coalfield to almost 100,000 hectares.
Xstrata Coal is the world’s largest international exporter of high energy thermal coal and a significant producer of premium quality hard coking coal and semi-soft coal. Headquartered in Sydney, the company has interests in over 30 operating coal mines in Australia, South Africa and Colombia and the Donkin and First Coal-Lossan projects in Canada.
Cline is a Toronto Stock Exchange (TSX) listed company with significant metallurgical coal property interests in British Columbia province in Canada and in Colorado state in the US with NI 43-101 compliant independent technical reports.