Corsa Announces Agreement to Purchase the Casselman Mine and a $25 Million Credit Facility

TORONTO, ONTARIO--(Marketwire - March 22, 2011) - Corsa Capital Ltd. (TSX VENTURE:CSO) ("Corsa" or the "Corporation") is pleased to announce that it has entered into an agreement dated March 22, 2011 (the "Agreement") with the owner of the Casselman mine, Maryland Energy Resources, LLC ("MER"), and the owners of MER, pursuant to which Corsa will acquire MER (the "Casselman Mine Transaction"). The purchase price is US $15,000,000 and the assumption of approximately US $1.2 million of debt. In addition, production from the Casselman Mine is subject to a 1.25 percent royalty in favour of the MER vendors.
The completion of the Casselman Mine Transaction is expected on or about April 21, 2011 and is subject to a number of conditions, including normal closing deliverables, ratification of certain matters with respect to leases and third party consents and approvals. Upon the completion of the Casselman Mine Transaction, MER will be an indirect wholly owned subsidiary of Corsa.
Mr. Charter, the President and Chief Executive Officer of Corsa, stated 'The Casselman Mine will provide us with a permitted long life mine giving us an immediate new source of metallurgical quality coal for our plant and an immediate increase in our expected production.'
The Mine
The Casselman mine will be a long life underground metallurgical coal mine located in Garrett County, approximately two miles south of Grantsville, Maryland, USA. All the necessary permits for this mine are in place and the mine face up has been completed in order to permit mining operations to commence immediately. This project is approximately 31 miles by truck from Corsa's Wilson Creek coal preparation plant in Somerset County Pennsylvania.
The Casselman Mine is planned to be developed in the Upper Freeport Coal seam. This mine has recently been permitted by Maryland Energy Resources for a total of 2900 acres. The permit area has been drilled extensively with 52 cores extracted, the most recent of which (27) were pulled in 2011 and 2010 by Wilson Creek Energy and others. The results of the most recently extracted cores are in Wilson Creek's possession and the previous 25 were generated by The Bureau of Mines, U.S. Department of the Interior, in 1952.

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