/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, June 5 /CNW/ - Coalcorp Mining Inc. (TSX: CCJ) announced today
that it has completed its previously announced offering of units for gross
proceeds of approximately $120 million. The units were sold through a
syndicate of underwriters led by GMP Securities L.P. and including Canaccord
Capital Corporation, Loewen, Ondaatje McCutcheon Limited and Macquarie Capital
Markets Canada Ltd. Each unit consisted of one common share and one common
share purchase warrant. Each warrant will entitle the holder to subscribe for
an additional common share at a price of $2.50 on or before June 5, 2013. The
warrants are listed on the Toronto Stock Exchange under the symbol CCJ.WT.B.
The company has granted the underwriters an over-allotment option to
purchase up to that number of additional Common Shares and Warrants equal to
approximately 15% of the Units sold pursuant to the offering, exercisable at
any time up to 30 days from the closing of the offering.
The net proceeds of this offering will principally be used to implement
the company's plan to increase production to 6.0 million tonnes per year by
the end of 2010 by developing Block C at its La Francia I property, make final
capital contributions to the Fenoco rail line, further fund construction of
the Fenoco rail spur connecting the Fenoco rail line to the company's La
Francia property, fund equipment acquisitions and related infrastructure
costs, fund the increase in infrastructure and facilities required to support
the company's expansion plan and fund pre-stripping operating costs. Any
remaining funds will be used for general corporate purposes, including
potential future acquisitions and working capital requirements.
The units, common shares and warrants have not been, nor will they be,
registered under the United States Securities Act of 1933, as amended, and may
not be offered or sold within the United States or to, or for the account or
benefit of, U.S. persons absent U.S. registration or an applicable exemption
from U.S. registration requirements. This release does not constitute an offer
for sale of securities in the United States.
Coalcorp is a coal mining, exploration and development company with
interests in the La Francia and La Caypa coal mines and related infrastructure
projects and a number of coal exploration properties, all located in Colombia.
Further information can be obtained by visiting our website www.coalcorp.ca.
This press release contains forward-looking statements based on
assumptions, uncertainties and management's best estimates of future events.
Actual results may differ materially from those currently anticipated.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties. Important factors that could cause actual results to differ
materially from those expressed or implied by such forward looking statements
are detailed from time to time in the company's periodic reports filed with
the British Columbia Securities Commission and other regulatory authorities.
The company has no intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
For further information:
For further information: Michael Davies, Chief Financial Officer, (416)