Columbus Energy Limited

April 14, 2013 18:52 ET

Columbus Energy Limited Enters Into Option Agreement to Acquire 60% of Polish Coal Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 14, 2013) - Columbus Energy Limited (TSX VENTURE:CEL) ("Columbus") is pleased to announce it has acquired a six month exclusive option to carry out a due diligence/mine study to acquire 60% of the Barbara-Chorzow Coal mine in Upper Silesia Poland from Przedsiebiors Uslug Gorniczych Greenway ("Greenway"), a local company whose directors and shareholders are well known in the Polish coal mining industry.

Provided Columbus is satisfied with the outcome of the due diligence/mine study particularly with the capital cost of reactivating the existing mine, and regulatory approval, it is the intention of Columbus to exercise the option.

Under the terms of the option agreement Columbus will be responsible for securing 100% of the capital expenditure 40% of which will be paid back by Greenway from initial production. No cash or shares will be issued on the exercise of the option agreement.

The mine, which closed in 1994, left the biggest seam (seam 816) intact due to economic constraints.

Greenway is the legal owner of a 13.4 square kilometre exploration concession over the existing mine area. Conditions to convert this exploration concession to an exploitation concession include the drilling of an exploration hole to 945 meters, the hole is presently at 915 meters. The exploitation application is presently being prepared.

Upon exercise of the option, a bankable feasibility study will be undertaken which should take 12 months to complete. Re-commissioning and construction work to access seam 816 will take approximately 27 months.

In the initial due diligence on the mine, Columbus and Greenway have relied on published reports and technical studies.

The mine infrastructure of Barbara-Chorzow has not been dismantled and the shafts headframe and winding gear remain in place.

Dr. Larry Thomas, B.Sc., Ph.D, C.Eng. FIMMM, C. Geol., FGS of Dargo Associates of the United Kingdom has been retained to provide a NI 43-101 report on the project. The contents of this news release is based upon the information received so far and has been approved by Dr. Thomas, the Columbus qualified person.

Columbus continues to evaluate the potential in recommissioning other existing coal mines in Upper Silesia, Poland.

Douglas Scheving, Director

Neither TSX Venture Exchange not its regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Columbus Energy Limited
    Douglas W. Scheving
    Director and Corporate Secretary
    604 684 7619