/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
TSX: WTN & WTN.DB and AIM: WTN
VANCOUVER, June 28 /CNW/ - Western Canadian Coal Corp. (TSX-V: WTN and
AIM: WTN) ("WCCC" or the "Company") is pleased to announce that further to its
news release of June 19, 2007, it has now closed a C$45 million private
placement (the "Offering").
GMP Securities L.P. (the "Underwriter") has brokered the subscription of
19,200,000 Units, including the Underwriter's over-allotment option, at a
price of C$2.35 per Unit for aggregate gross proceeds of approximately
C$45 million. Each Unit consists of one common share of the Company and
one-quarter of one common share purchase warrant. Each whole common share
purchase warrant entitles the holder to acquire one additional common share of
the Company at an exercise price of C$3.25 until June 28, 2012. Cenkos
Securities plc was a special selling group member for the Offering.
All securities issued under the Offering will be subject to a hold period
until October 29, 2007 in accordance with the policies of the Toronto Stock
Exchange (the "TSX") and applicable Canadian securities laws and such other
further restrictions as may apply under foreign securities laws, if
The common shares issued under the Offering will be traded on the TSX.
Application has been made to the London Stock Exchange for these common shares
to be admitted to trading on AIM, which, if approved, is expected to become
effective on July 2, 2007. Application has also been made to the TSX to list
the common share purchase warrants which, if approved, is expected to become
effective on October 29, 2007.
The Company's major shareholder, Cambrian Mining Plc ("Cambrian") of
London, UK, has subscribed for 2,450,000 Units for aggregate gross proceeds of
C$5,757,500. Cambrian and its wholly-owned subsidiary, Deepgreen Minerals
Corporation Ltd., now hold approximately 48.3 million common shares
representing 41.7% of the issued common shares of the Company as well as
warrants to purchase a further 612,500 common shares of the Company. Mr. John
Byrne, Chairman of the Company, is also a director and the CEO of Cambrian and
Mr. John Conlon, director of the Company, is also a director of Cambrian.
As Cambrian is a substantial shareholder of the Company, the sale of
Units to Cambrian is an exempt related party transaction under applicable
Canadian securities laws and is a related party transaction under the AIM
Rules. Having consulted with the Company's nominated adviser, the directors of
the Company, other than Messrs. Byrne and Conlon who are also directors of
Cambrian, consider that the Offering is fair and reasonable insofar as its
other shareholders are concerned.
In connection with the Offering, the Company has paid the Underwriters a
fee of C$2,112,062.50 which is based on 5% of the proceeds received from the
Offering, other than the proceeds received from Cambrian, and 2.5% of the
proceeds received from Cambrian.
The proceeds of the Offering will be used to repay approximately
C$19.6 million of the Wolverine project debt facility and for general
corporate purposes including working capital.
This press release is not an offer of the securities for sale in the
United States. The securities offered have not been registered under the
United States Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an exemption from the
registration requirements. This press release shall not constitute an offer to
sell or a solicitation of an offer to buy nor shall there be any sale of the
securities in any state of the United States in which such offer, solicitation
or sale would be unlawful.
WESTERN CANADIAN COAL CORP.
"John W. Hogg"
President and Chief Executive Officer
For further information:
For further information: Mr. John Hogg, President & CEO, Western
Canadian Coal Corp., Ph (604) 608-2692, Fax: (604) 629-0075, E-mail: