A mining project near Prince George has got a cash infusion, moving the proposed coal operation forward.
Cardero Resource Group announced on Monday that the company had obtained confirmation from the Canada Revenue Agency "that the anticipated British Columbia Mineral Exploration Tax Credit - amounting to $3,734,023 - has been processed and should be received by Cardero Coal Ltd. shortly."
This $3.7 million tax refund will be used, said a statement issued by Cardero, to pay back an intermediary lender, Robert C. Kopple of Los Angeles.
We are delighted to be receiving this injection of cash and concurrently reducing the companys liabilities to our senior lender, stated Henk van Alphen, Carderos CEO. Mr. Kopple has supported Cardero through difficult times in 2013 and his support has helped secure the future of the company and our flagship asset, the Carbon Creek metallurgical coal deposit in northeast B.C. We believe that Carbon Creek is a valuable asset capable of delivering significant benefit to the Company and its shareholders.
The Carbon Creek site is a proposed coal mine about 250 km directly north of Prince George, just east of the Hudson's Hope townsite. It is currently designed to cover 3,513 hectares. According to company statements, the project has a current resource estimate of 468 million tonnes of metallurgical coal measured and indicated, with an initial reserve of 121 million tonnes of proven and probable coal.
As proposed, the mined coal would be shipped by barge down the Peace Reach and then the main body of Williston Lake to Mackenzie, then put on rails south to Prince George before turning west to Ridley Coal Terminal in Prince Rupert.
The mine has a life expectancy of at least 20 years.
