CANONSBURG, PA, Nov. 30, 2016 /CNW/ - Corsa Coal Corp. (TSXV:
CSO) ("Corsa" or the "Company") today provided an update to its fourth quarter guidance and announced the decision by its board of
directors (the "Board") to proceed with the implementation of a consolidation of the issued and outstanding common shares in the
capital of the Company (the "Shares") on the basis of one (1) post-consolidation Share for each 20 pre-consolidation Shares (the
"Consolidation"). Subject to the approval of the TSX Venture Exchange, the Consolidation is expected to be implemented pursuant to
articles of amendment filed in accordance with Corsa's governing corporate law statute, the Canada Business Corporations
Act. The Shares are expected to begin trading on a post-Consolidation basis on the TSX Venture Exchange on or about Wednesday, December 7, 2016.
Guidance Update
In response to the current strength in metallurgical coal prices, Corsa has taken steps to increase sales volumes of
metallurgical coal. Corsa expects metallurgical sales volumes from its Northern Appalachia (NAPP) Division to be approximately
250,000 tons during the fourth quarter of 2016 ("Q4 2016"). All of the Q4 2016 sales volumes are contracted at fixed prices
and Corsa expects to realize approximately US$100 per ton (FOB Mine), which would represent a 44%
improvement over Corsa's average realized metallurgical coal price per ton sold in the third quarter of 2016.
Corsa expects prices in the first quarter of 2017 ("Q1 2017") to improve further relative to Q4 2016 as lower-priced,
legacy domestic 2016 contracts expire (these legacy contracts represent approximately 45% of Q4 sales volumes). For 2017, Corsa
expects the vast majority of its sales to be with international customers, given the higher expected price realizations as compared
to domestic sales. Corsa has committed approximately 70% of its volumes in Q1 2017 at prices that reflect current market
conditions. Pricing guidance for Q1 2017 will be updated after the contract benchmark for metallurgical coal is settled,
likely to be in the second half of December.
Corsa expects to further increase sales volumes in 2017 by purchasing and reselling metallurgical coal produced by third parties
in the Northern and Central Appalachian regions and through sales of metallurgical coal produced from the Company's Acosta Deep
Mine in Somerset County, Pennsylvania. As previously announced, the Acosta Deep Mine is expected
to commence production in the second quarter of 2017. Additionally, Corsa is taking steps to restart the Shade Creek
preparation plant and loadout facility, which is on the Norfolk Southern rail line, and is anticipated to be operational in Q1
2017.
Share Consolidation and Preferred Share Authorization
As previously announced, at the annual and special meeting (the "Meeting") of the shareholders of the Company (the
"Shareholders") that was held on August 10, 2016, the Shareholders, among other things, passed: (i) a
special resolution approving a future consolidation of the Company's issued and outstanding Shares on the basis of one (1)
post-consolidation Share for up to 100 pre-consolidation Shares if, and at such time following the date of the Meeting, as the
Board so determines; and (ii) a special resolution authorizing the Company to issue an unlimited number of Preferred Shares. For
further details regarding the Consolidation and the Preferred Share Authorization, please consult the management information
circular provided to Shareholders in connection with the Meeting, which can be found under Corsa's profile on www.sedar.com.
The Board has determined that a Consolidation at this time is in the best interests of the Company and believes that the
Consolidation will provide the Company with a share capital structure that will better attract investors and enhance future growth
opportunities.
After giving effect to the Consolidation, the 1,887,775,762 pre-Consolidation Shares will be consolidated into approximately
94,388,784 post-Consolidation Shares and the exercise prices and the number of Shares issuable upon the exercise or deemed exercise
of any stock options or other convertible or exchangeable securities of the Company will be automatically adjusted based on the
consolidation ratio selected by the Board. No fractional Shares will be issued, and no cash consideration will be paid, if, as a
result of the Consolidation, a registered Shareholder would otherwise become entitled to a fractional Share. After the
Consolidation, then current Shareholders will have no further interest in the Company with respect to their fractional Shares.
A letter of transmittal will be mailed to the registered Shareholders providing instructions to surrender the certificates
evidencing their Shares for replacement certificates representing the number of Shares to which they are entitled as a result of
the Consolidation. Until surrendered, each certificate representing pre-consolidation Shares prior to the Consolidation will be
deemed for all purposes to represent the number of Shares to which the holder of that certificate is entitled as a result of the
Consolidation.
In conjunction with the Consolidation, Corsa will proceed with an amendment to the Company's articles authorizing the issuance
of an unlimited number of preferred shares (the "Preferred Shares"), issuable in series, with such rights, privileges, restrictions
and conditions as the Board may determine from time to time (the "Preferred Share Authorization"). The Board does not have any
current intentions to issue Preferred Shares.
Information about Corsa
Corsa is a coal mining company focused on the production and sales of metallurgical coal, an essential ingredient in the
production of steel. Our core business is producing and selling metallurgical coal to domestic and international steel producers in
the Atlantic and Pacific basin markets. Corsa also offers high heat content, low delivered cost coal to major utilities and
industrial users in the Southeast region of the U.S.
Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information within the meaning of applicable
securities laws (collectively, "forward looking statements") and which are based on the expectations, estimates and projections of
management of Corsa as of the date of this press release unless otherwise stated. Forward-looking statements are statements and
information regarding possible events, conditions or results of operations that are based upon assumptions about future economic
conditions and courses of action. Some of the forward-looking statements may be identified by words such as "expects",
"anticipates", "believes", "plans", "projections", "outlook", "intends", "may", "could", "would", "might", "will" and similar
expressions. More particular and without imitation, this press release contains forward looking statements and information
concerning Corsa's anticipated metallurgical coal sales volumes and prices, the timing of commencement of production at the Acosta
Deep Mine, the restart of the Shade Creek preparation plant, the approval by the TSX Venture Exchange, and the implementation date
(including the date on which the Shares will being trading on a post-Consolidation basis) of, the Consolidation and Preferred Share
Authorization and the potential benefits of Consolidation.
By their very nature, forward looking statements involve numerous assumptions, inherent risks and uncertainties, both general
and specific, and the risk that predictions and other forward looking statements will not prove to be accurate. Do not unduly rely
on forward looking statements, as a number of important factors, many of which are beyond Corsa's control, could cause actual
results to differ materially from the estimates and intentions expressed in such forward looking statements.
Forward looking statements speak only as of the date those statements are made. Except as required by applicable law, Corsa does
not assume any obligation to update, or to publicly announce the results of any change to, any forward looking statement contained
herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the
forward looking statements.
The TSX Venture Exchange has in no way passed on the merits of this news release. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Corsa Coal Corp.
