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| | April 27, 2010
Radar Provides Operational Update on Alabama Coal Operations
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| | Calgary, AB -- April 27, 2010 -- Radar Acquisitions Corp. (TSXV: RAC) ("Radar") currently has two main coal properties which are operated through its 49% owned company RAC Mining LLC ('RAC" or the "Company"), the Powhatan mine in Jefferson County, Alabama and the Davis Mine in the Franklin, Marion and Winston counties in Alabama. RAC has been producing coal form its Powhatan Mine site since December 2009, 6,316 tons of coal were mined in March 2010. The Company is targeting full production from current assets in Alabama of over 30,000 tons per month; 15,000 tons per month from Powhatan and 15,000 tons per month from the Davis Mine.
Powhatan Mine
RAC operates a surface mine at the Powhatan site and mined 6,316 tons of coal in the month of March 2010, up from 4,537 tons in January 2010. RAC anticipates mine production in April of approximately 8,000 tons, the increase in production is due to the fact the Company recently purchased larger capacity equipment. Specifically, RAC purchased the following mining equipment for over $1.6 million USD:
- One Komatsu dozer D475A,
- One Komatsu PC 1800 excavator; and
- Two Komatsu 875 100 ton rock trucks
This equipment will enable RAC to achieve 2010 exit production of 14,000 tons per month from the Powhatan Mine. RAC anticipates it will produce approximately 130,000 tons in 2010 from the Powhatan Mine alone.
The Company is mining two high quality coal seams; the Blue Creek seam (metallurgical coal) and the Mary Lee seam (thermal or steam coal) with approximately 80% of current production being metallurgical coal. Coal is sold as mined and does not require any further washing/processing and the mine's location, at a river load-out and in proximity of its customers, reduces the handling and hauling costs. The coal is currently being sold into the local markets to both industrial users (metallurgical coal) and power plant customers (thermal coal). In March, RAC also sold some of its production into the seaborne markets.
Key Operational Highlights and Accomplishments
- Actual production of 6,316 tons in March 2010 up from 4,537 tons in January 2010
- Production mix to date of 80% metallurgical coal and 20% thermal coal
- Estimated 2010 exit production of 14,000 tons per month with total 2010 production of 130,000 tons
- Mineable land portfolio includes 370 acres of permitted and 80 acres of non-permitted lands
- Acquired 4 pieces of additional mining equipment; 1 Komatsu dozer D475A, 1 Komatsu PC 1800 excavator and 2 Komatsu 875 100 ton rock trucks
- Metallurgical coal sold under a 1 year contract (calendar year based) at prices ranging between $109 and $115 per ton with a volume commitment of 4,000 tons per month. Additional volumes sold on the spot market.
Davis Mine
RAC has obtained mineral leases on approximately 640 acres of land in the Franklin, Marion and Winston counties in Alabama. This site, referred to as the Davis Mine, is currently in the process of being permitted and a formal application is expected to be submitted within the next 3 months. As part of this process, approximately 18 drill holes were completed with the aim to determine a USGS (United States Geology Survey) compliant resource estimate within the next 45 days. Once permitted, RAC plans to operate the mine at an average of 15,000 tons per month and sell the thermal coal in the local power markets
Strategic Growth Opportunities
Radar continues to evaluate other mining opportunities in the Appalachia region of the Unites States of America and in particular in the state of Alabama. With the strong coal market and the increasing pricing environment, management intends to expand on its current portfolio of coal assets through strategic acquisitions and/or alliances with local coal producers.
OTHER INFORMATION
William Collins P. Geo., a qualified person, has reviewed and verified the technical mining information contained in this news release.
About Radar Acquisitions Corp.
Radar is a natural resource development company focused on growth through the acquisition, exploration and development of coal resources and resource-related technologies. Radar's main activities and assets include its 49% owned Alabama coal mine operations, the exclusive rights to a proprietary Coal to Liquids technology which converts coal into liquid fuels (such as oil, jet fuel) at an economical cost with zero airborne emissions and the Buick Coal Project which holds significant coal resources in Colorado, USA (see the technical report entitled "Limon Lignite Project, Elbert County, Colorado, USA," dated October 26, 2007 and filed on SEDAR on November 2, 2007). Other coal and related opportunities continue to be evaluated on an ongoing basis. For more information about Radar, go to www.radar.ab.ca.
For Further Information:
Corporate Head Office:
Timothy J. Bergen, President
Tel: 403.262.3797
Toll Free: 1.877.262.5888
Email: tbergen@radar.ab.ca,
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that terms is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information and Statements
This press release contains certain forward looking statements and forward looking information (collectively referred to herein as "forward looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward looking statements. Forward looking statements are often, but not always, identified by the use of words such as "could", "should", "can", "anticipate", "estimate", "expect", "believe", "will", "may", "project", "budget", "plan", "sustain", "continues", "strategy", "forecast", "potential", "projects", "grow", "take advantage", "well positioned" or similar words suggesting future outcomes. In particular, this press release contains forward looking statements relating to: the future production of the Powhatan mine; the permitting of the Davis mine; and the potential production at the Davis mine. This forward looking information is based on management's estimates considering typical strip mining operations, equipment requirements and availability and typical permitting timelines.
In addition, forward looking statements regarding the Company are based on certain key expectations and assumptions of the Company concerning anticipated financial performance, business prospects, strategies, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of services, the ability to obtain financing on acceptable terms, the actual results of exploration projects being equivalent to or better than estimated results in technical reports or prior exploration results, and future costs and expenses being based on historical costs and expenses, adjusted for inflation, all of which are subject to change based on market conditions and potential timing delays. Although management of the Company consider these assumptions to be reasonable based on information currently available to them, these assumptions may prove to be incorrect.
By their very nature, forward looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward looking statements will not be achieved. Undue reliance should not be placed on forward looking statements, as a number of important factors could cause the actual results to differ materially from the Company's beliefs, plans, objectives and expectations, including, among other things: general economic and market factors, including business competition, changes in government regulations or in tax laws; the early stage development of the Company and its projects; general political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. These factors should not be considered exhaustive. Many of these risk factors are beyond the Company's control and each contributes to the possibility that the forward-looking statements will not occur or that actual results, performance or achievements may differ materially from those expressed or implied by such statements. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these risks, uncertainties and factors are interdependent and management's future course of action depends upon the Company's assessment of all information available at that time.
Forward -looking statements in respect of the future production of the Powhatan mine may be considered a financial outlook. These forward-looking statements were approved by management of the Company on April 19, 2010. The purpose of this information is to provide an operational update on the company's activities and strategies and this information may not be appropriate for other purposes.
The forward looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward looking statements included in this press release are made as of the date of this press release and the Company does not undertake and is not obligated to publicly update such forward looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws. |
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