VANCOUVER, Dec. 11 /CNW/ - Western Coal Corp (TSX: WTN, WTN.WT and WTN.DB and AIM: WTN) ("Western" of the "Company") announced today that it intends to file with the Toronto Stock Exchange ("TSX") a notice of its intention to make a normal course issuer bid for its common shares (the "Common Shares") through the facilities of the TSX and the Alternate Investment Market of the London Stock Exchange ("AIM") (the "Notice").
Subject to TSX approval, Western intends to purchase up to 10 million Common Shares, being approximately 5% of Western's public float* (as defined under applicable TSX rules) as at December 11, 2009. Western will purchase the Common Shares at market price at the time of acquisition under the normal course issuer bid, which will be conducted in accordance with TSX requirements. The actual number of Common Shares that may be purchased and the timing of any such purchases will be determined by Western.
The normal course issuer bid will commence two trading days after final acceptance of the notice of approval by the TSX and will continue over the following twelve month period unless terminated earlier by Western. Any Common Shares purchased under the normal course issuer bid will be cancelled.
Keith Calder, President and CEO, states, "We believe the market price of our shares do not adequately reflect the value of the Company's assets and future business prospects. As a result, purchasing the Company's Common Shares provides an attractive return for the Company."
* Public float = 185.5 millions shares, which is 322.8 million shares outstanding less 72.1 million shares owned by Cambrian Mining Ltd (a wholly owned subsidiary of Western) less 61.8 million owned by Audley Capital LLP less 3.2 million owned by Company Insiders.
Western is a producer of high quality metallurgical and thermal coal from mines located in northeast British Columbia (Canada) and West Virginia (USA). The mines have the capacity to produce 7 million tonnes per year and have over 20 years of coal reserves. Western also owns a 50.6% interest Energybuild (EBG: AIM) which produces high quality anthracite and thermal coal in South Wales (UK). Other interests owned include a 45% interest in Xtract Energy (XTR: AIM) and a 20% interest in NEMI Northern Energy & Mining (NNE.A: TSX). The Company is headquartered in Vancouver, BC, Canada, and trades on the AIM and TSX stock exchanges under the symbol "WTN". More information can be found at www.westerncoal.com
SOURCE WESTERN COAL CORP.
For further information: For further information: David Jan, Director, Investor Relations, (604) 608-2692, David.Jan@westerncoal.com