VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/21/13 -- Cardero Resource Corp. ("Cardero" or the "Company") (TSX: CDU)(NYSE MKT: CDY)(FRANKFURT: CR5) announces that Cardero Coal Ltd. ("Cardero Coal") has signed a letter of intent ("LOI") with Canadian Forest Products Ltd. ("Canfor") outlining the terms under which Cardero Coal will charter the MV Williston Transporter for transportation of metallurgical coal from Carbon Creek to the railhead at Mackenzie, BC. This charter party arrangement will terminate at the end of 2015, at which time it is anticipated that Cardero Coal's purpose-built tug and barge will be commissioned to transport coal through the remainder of the currently proposed mine life.
Under the terms of the LOI, the Companies will enter into two definitive agreements, being a Charter Party relating to the MV Williston Transporter and a Timber Harvesting Agreement relating to mine site logging prior to mine construction. Cardero Coal will pay for the charter of the MV Williston Transporter, but anticipates receiving revenue from the logging of the mine site under the Timber Harvesting Agreement.
MV Williston Transporter
Cardero Coal intends to transport coal from the proposed Carbon Creek mine site to the railhead at Mackenzie via the Williston Reservoir, using a tug and barge system. It is anticipated that Cardero Coal's purpose-built tug and barge solution will be constructed on site at Mackenzie. A Request for Qualification has been circulated to engineering firms with marine experience and responses are currently under review. It is anticipated that the final design and tender process will begin in Q2 and will be completed in early Q3 2013.
Cardero Coal intends to use the MV Williston Transporter as an interim solution during construction, initial production and ramp-up at Carbon Creek. The MV Williston Transporter is a 360 foot, 7,400 horsepower, self-propelled ice-breaking barge with a deadweight capacity of 4,000 tonnes. The vessel was constructed for Canfor Mackenzie in 1994 by Findlay Navigation, who began operations in 1968 as a marine towing business, operating tugs and barges on Williston Reservoir.
The vessel was built on the shores of the Williston Reservoir and has been in service since 1995, providing year-round transportation services for forestry and mining industries located on the shores of the reservoir. The vessel will be chartered by Cardero Coal, on a bareboat basis, in July 2014 for 18 months and will initially assist with transportation of mine construction plant and materials from Mackenzie railhead to the mine site. Once initial coal has been produced, it is planned that the vessel will switch to metallurgical coal transportation from the mine site to Mackenzie. Since the vessel can be loaded directly from shore, it will not be necessary to complete construction of material handling systems prior to shipping the first product.
To view the photos accompanying this release, please visit the following link: http://media3.marketwire.com/docs/cdu321i.pdf
The foregoing arrangements are subject to, amongst other things, the settlement and execution of the definitive Charter Party and Timber Harvesting Agreement and receipt of all required approvals and consents.
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