VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/29/13 -- EastCoal Inc. (TSX VENTURE: ECX)(AIM: ECX) ("EastCoal" or the "Company") announces its unaudited interim condensed consolidated financial statements for the three months ended March 31, 2013. These are provided in two sections below:
1. Management Discussion and Analysis of East Coal; and2. Unaudited interim condensed consolidated financial statements for the three months ended March 31, 2013.
For further information please visit: www.eastcoal.ca.
About EastCoal Inc.
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking information. These and all subsequent written and oral forward-looking information are based on estimates and opinions on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
Management Discussion and Analysis
For the Three Months Ended March 31, 2013
This Management Discussion and Analysis ("MD&A") of EastCoal Inc. (the "Company" or "EastCoal") provides analysis of the Company's financial results for the three months ended March 31, 2013 and should be read in conjunction with the accompanying unaudited interim condensed consolidated financial statements and notes thereto for the three months ended March 31, 2013 and the Company's Annual Information Form ("AIF") all of which are available on SEDAR at www.sedar.com. The MD&A is current as at May 29, 2013, the date of preparation.
The March 31, 2013 financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") applicable to the preparation of interim financial statements. All amounts are expressed in Canadian dollars, unless otherwise stated.
Certain statements made may constitute forward-looking statements. Such statements involve a number of known and unknown risks, uncertainties and other factors. Actual results, performance and achievements may be materially different from those expressed or implied by these forward-looking statements.
-- Verticalnaya development was halted during the course of the quarter due to the working capital challenges reported to the market on February 8, 2013 and March 12, 2013;-- Geological challenges forced the discontinuation of the long wall at the Menzhinsky underground mine whilst technical challenges at the wash plant continued throughout the quarter;-- On May 22, 2013 the Company's board of directors ("Board") resolved to place Inter-Invest Coal LLC ("Inter-Invest) into administration and/or liquidation, thereby crystalizing the Company's losses from the Menzhinsky Mine and wash plant. During this process, the Company will work with the relevant administrators and other stakeholders to inter alia seek an orderly disposal process of the assets or possible third party investment in an attempt to satisfy claims against Inter-Invest. This will allow the Company to focus on its primary asset, Verticalnaya; and-- EastCoal is presently in the final stages of completing an equity fundraising, principally with institutional investors and expects, very shortly, to be able make a further announcement in this regard. The Board is confident that the completion of that fundraising will provide the longer term financial solution required by the Company.