Advertisement
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/28/12 -- EastCoal Inc. ("EastCoal" or "the Company") (TSX VENTURE: ECX)(AIM: ECX) -
-- Shares commence trading on AIM-- Placing of 67,478,501 common shares of the Company at a price of GBP 0.1221 per Placing Share, together with a concurrent issuance of 10,326,577 common shares of the Company as settlement for a CAD$2,000,000 loan received by the Company from Salida (on behalf of a fund managed by Salida) at a deemed conversion price of GBP 0.1221 per common share. The Placing proceeds, together with the proceeds of the Salida loan which will be converted into common shares and settled concurrently with the Placing will amount to gross proceeds of GBP 9.5 million.
Assets and Strategy
-- Company has 100% interests in the Verticalnaya high grade anthracite mine and the Menzhinsky coking coal mine, in eastern Ukraine-- Strategy to produce 3 million saleable tonnes per annum-- First external player in a region of significant coal reserves-- EastCoal's Board has extensive experience with the markets in London. Three of the Company's directors were either directors or officers of Western Coal Corp., which, prior to its acquisition by Walter Energy, was the largest company, by market capitalization, on AIM.
EastCoal Inc., a mineral development company engaged in the acquisition and development of mineral resource properties, announces the commencement of trading on AIM ("Admission") at 8.00 a.m. today after a placing ("the Placing"). Pursuant to the Placing, the Company has issued 67,478,501 common shares at a price of GBP 0.1221 per share to institutional investors and certain directors of the Company, together with a concurrent issuance of 10,326,577 common shares of the Company as settlement for a CAD$2,000,000 loan received by the Company from Salida Capital LP ("Salida") (on behalf of a fund managed by Salida) at a deemed conversion price of GBP 0.1221 per common share, and the Placing proceeds, together with the proceeds of the Salida loan which will be converted into common shares and settled concurrently with the Placing will amount to gross proceeds of GBP 9.5 million. Cenkos Securities plc is acting as the Nominated Advisor for the purposes of the Admission and the broker for the Placing.
EastCoal obtained the rights to the Verticalnaya Mine, located in the Donbass Region, in 2009 and is currently advancing the development of this anthracite mine, targeting production in the first quarter of 2013.
In addition, following the Company's acquisition of Inter-Invest Coal LLC in 2012, EastCoal is developing and increasing production from the Menzhinsky Coal Mine. This is an operating underground metallurgical coal mine also located on the Eastern side of Ukraine. Together with the New Wash Plant at the Menzhinsky Mine, production is expected to increase from approximately 6,000 tonnes per month currently, to 26,000 tonnes per month during 2013.
The Company's objective is to increase total production from the current level to approximately three million saleable coal tonnes per annum.
