It is reported that following on from a significantly increased resource at its Alberta-based Vista project, Coalspur Mines has closed its previously announced private placement financing with resource investor Highland Park Group raising USD 11.1 million.

The Calgary-based coal explorer sold 6.0 million ordinary shares at CAD 1.85 each to Highland Park a firm that traditionally invests in projects where resource definition is advanced including Mantra Resources and Mirabel Nickel.

The placement formed part of a CAD 55.5 million capital raising which also included a public offering of 24.0 million ordinary shares at the same price, for gross proceeds of CAD 44.4 million completed in early May.

Mr Gene Wusaty managing director and CEO said "The capital raising has placed Coalspur in a very strong position financially and has further expanded its investor base. With over AUD 60 million in cash reserves Coalspur is sufficiently funded to complete the Bankable Feasibility Study, pursue exploration and development activities and finalize all permitting required beginning construction of the Vista Coal Project."

Last week, Coalspur announced that it had raised the total measured and indicated coal resource at its Vista project to 1.08 billion tonnes, as an additional 49 drill holes were included in the estimate, along with new areas. Inferred resources climbed by 22.3 million tonnes to 379.6 million.

Vista which covers 8,784 hectares is a large scale, open pit potential, thermal coal project located adjacent to the main line of the CN Rail in Alberta, Canada.

(Sourced from www.proactiveinvestors.com)