Thursday, November 12, 2015

Colonial Coal seemingly still casting a gaze at potential of Watson Island

The September 2015 Investor Presentation
from Colonial Coal still makes
mention of hopes for a Watson Island
terminal for the Vancouver company
There is some intriguing material to be found in the most recent Investor presentation from Colonial Coal, the Vancouver based resource company that has in the past expressed a significant amount of interest in the Watson Island industrial site as a potential location for its Prince Rupert operations.

And while that path towards potential ownership doesn't appear to have quite made it to the signing on the dotted line phase, (a long running legal dispute with the City of Prince Rupert is still unresolved) it would appear that Colonial Coal still is pretty fixed on one day making Watson Island a centrepiece of its resource shipment plans for the North coast.

The material provided as part of the investor presentation from September posted to the Colonial Coal website makes prominent mention of the Watson Island industrial site as part of its overall review.

On page 14, of their investor notes Colonial Coal reinforces its interest in the site, making mention of the 2012 Memorandum of Understanding of the past between the company and the Lax Kw'alaams First Nation and Metlakatla First Nation which at the time resulted in the formation of their joint venture to seek the potential acquisition of the Watson Island site.

As well, there is also mention of the then exclusive arrangement (Exclusivity Agreement) from the Coast Tsimshian Nation with the City of Prince Rupert to purchase the Watson Island land.

Colonial Coal also continues to outline how they, along with another industry partner, would compensate the City of Prince Rupert for actual land expenses in accordance with the terms of the Exclusivity Agreement.

The September 2015 prospectus posted to their current website offerings, also notes that the Joint venture will undertake a feasibility investigation when it comes to any development of the Watson Island land and that the site offers what Colonial Coal describes as a "potential and exciting solution to expand coal export capacity in British Columbia in light of increasing coal production"

Colonial Coal is still listing Watson Island as one of its plans for the future
making mention of the industrial site on page 14 of a September 2015 presentation to investors

You can review the entire 31 page presentation by downloading the report from the Colonial Coal main page, it is available for download from the Press Release section of the company website.

The fact that the prospectus to investors is dated September, 2015 is an interesting aspect of the Colonial Coal presentation, highlighting as it does the still strong interest in the industrial site by the company.

Some of the the discussion points that make up the current presentation appear to be among some of the key themes of the ongoing court action between the City and WATCO (Colonial Coal), which we offered an update on back in August.

And while it's interesting to review the proposed development ideas from the view of Colonial Coal, there may be a few local concerns, beyond the still unresolved legal story to deal with now, before the idea of a new bulk goods terminal may make it to the finish line.

In light of recent events, it might be interesting to try and divine exactly where the Lax Kw'alaams and Metlakatla First Nations might be at when it comes to any joint ventures at the moment, with both taking decidedly different approaches to when it comes on how to approach issues related to Lelu Island.

As well, with a new Federal Government in place and one apparently with a more focused approach towards environmental concerns, it will be interesting to watch and see how the Liberal's approach to the coal industry may evolve in relation to their apparent dedication towards climate matters.

Still, the reading from September makes for a fascinating addition to the Watson Island file, with nary a mention of the Colonial Coal proposal or ongoing court proceedings (or any other potential investment for the site for that matter) made by the City in a number of months.

With the surprise reappearance last month of a former investor in the Sun Wave saga and now the still percolating investment plans related to Colonial Coal, it appears that everyone is talking about Watson Island except for City Council.

You can review some of the past dispatches related to WATCO below:

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