- July 2, 2013,11:42 pm
Cuesta is pleased to provide our shareholders with an update on recent corporate and operational progress for the Company.
Regulatory Approvals – Share Placement
On 16 April the Company received FIRB approval for the $12m share placement by the company’s major shareholder, Beijing Guoli (through its wholly owned subsidiary Longluck Investments (Australia) Pty Ltd. On 5th June Cuesta announced that Beijing Guoli received Chinese Regulatory approval for the investment in Cuesta.
The funds from the placement will be used to reduce the convertible note liability arising from the Orion Coal Project acquisition and to progress the exploration and development activities at our flagship project at Moorlands, which is set to become Cuesta’s first development project.
The share placement received Cuesta shareholder approval at the General Meeting which was held on 24 June 2013.
Progress at Moorlands
The Moorlands Project is Cuesta’s flagship development project and comprises EPCs 775, 776 and 1738. The project has a 146.1Mt JORC resource and is located 14km west of the Blair Athol Coal Mine and rail access in the Western Bowen Basin.
Recent progress at the Moorlands Project has been positive. In April the company announced completion of the geological model and resource estimate. The geological model has been provided to Xenith Consulting, along with the recently announced coal quality results. Particularly encouraging, is the product recovery rates on the washed coal samples which average 90% while producing a 10.4% ash product with an acceptable energy content of 6,077 k/cal adb.
The detailed laboratory results are pleasing and will be a key input into the mine scoping study which is due to be finalised shortly. Encouragingly a single low ash, moderate energy coal specification can be generated from the south pit deposit.
In the meantime, the Company is excited to be transitioning from explorer to developer and looks forward to continuing to develop Moorlands as its key project. The Company continues to be supported by our major shareholder, Beijing Guoli which is a great asset in these difficult economic times.
Cuesta will continue to keep our shareholders updated on the company’s progress throughout the busy year ahead.
The Cuesta Coal Team