Xstrata Coal acquires Lossan deposit from Cline Mining

Sydney, 7 October 2011

Xstrata Coal has agreed to acquire 100% of the Lossan metallurgical coal deposit ("Lossan") from Cline Mining Corporation for CDN$40 million, subject to customary conditions. The acquisition is expected to complete on 12 October 2011.

 

Lossan is located in the Peace River Coalfield of north eastern British Columbia, Canada, and is surrounded by a group of licences recently acquired by Xstrata Coal through the acquisition of First Coal Corporation in early August 2011. 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. On acquisition, First Coal Corporation held licenses or applications for licenses in respect of approximately 94,000 hectares in the Peace River Coalfield.