Colonial Coal reaches MOU with Coast Tsimshian to possibly purchase Watson Island

Colonial Coal announced today that it had reached a MOU with the Coast Tsimshian to examine purchasing Watson Island.

Colonial Coal announced today that it had reached a memorandum of understanding with the Lax Kw’alaams and Metlakatla First Nation to for a joint venture that would purchase Watson Island from the City of Prince Rupert.

As part of the MOU, Colonial Coal and the Coast Tsimshian will compensate the City for land expenses while undertaking a feasibility study.

“We met with Wayne Drury of the Coast Tsimshian, and looked at what could be done with the property….Our intent is to do something with the island that will be very positive for the community and should be very positive for the port,” said Colonial Coal CEO David Austin, noting a confidentiality agreement limited what could be discussed in terms of plans for the site.

“Obviously there are environmental issues and other issues with the site…We are aware that there are challenges with the site, but we’re confident we’ll be able to work through those challenges.”

The MOU is non-binding except in certain limited respects but sets out the general terms and parameters regarding the potential financing, development and use of the Watson Island.

Formed in 2007, Colonial Coal is a Vancouver-based mining development company specializing in metallurgical coal. It has two resource-stage coal properties in the Peace River Coal Field.

Look for more on this story as it becomes available.