The company intends to achieve a national instrument 43-101 compliant technical assessment by the first quarter of 2012, and production is still on track to commence in late-2012.
Pacific Coal has also engaged Colombia’s Transportes Sanchez Polo to provide fleet management and transport services for an initial one-year period.
The company has also received 100 new trucks, of which 70 are expected to be in full operation by the second quarter of 2011.
The trucks will serve both the La Caypa and La Divisa (Cerro Largo) mines.
Pursuant to an Investment Option Agreement with ALPHA, NDT and Bioenergy International earlier this year, Pacific Coal has the right to acquire up to a 20% equity interest in BIOINT for a $20m.
Pacific Coal agreed to advance $5m in exchange for a 5% equity interest in BIOINT while the $15m will be given following testing of Colloidal Coal in Water (CCW) and Colloidal Asphaltite in Water (CAW) within the 3-month period.
The agreement also grants Pacific Coal a carried interest up to $20m in a 50/50 joint venture with BIOINT to build plants to produce and market CCW/CAW out of its mines in Colombia.
The first plant is expected to cost approximately $40m and Pacific Coal will retain the right to sell the coal and/or asphaltite to the joint venture company.
Pacific Coal said 80 beehive ovens are now operational and commercial production will begin in 2011 and 80 additional ovens will be commissioned in the third quarter of 2011.
The Company has received a technical review and financial assessment from Nathan Associates has provided alternatives with capital expenditure estimates for the development of the Barranquilla Port, which will be commissioned in 2012.
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