/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, March 13 /CNW/ - Coalcorp Mining Inc. (TSX: CCJ) announced today
that it has completed its previously announced offering of units for gross
proceeds of $140 million. The units were sold through a syndicate of
underwriters led by GMP Securities L.P. and including Canaccord Capital
Corporation and Sprott Securities Inc. Each unit consisted of one common share
and one-half of one common share purchase warrant. Each whole warrant will
entitle the holder to subscribe for an additional common share at a price of
$1.20 on or before August 17, 2011. The warrants are listed on the Toronto
Stock Exchange under the symbol CCJ.WT.A.
The company has granted to the underwriters an option, exercisable in
whole or in part for a period of 30 days following the closing of the
offering, to purchase up to an additional 30 million common shares at a price
of $0.60 per common share and up to an additional 15 million warrants at a
price of $0.20 per warrant.
Coalcorp plans to use the net proceeds of this offering principally for
the previously announced La Francia II acquisition. Any remaining funds will
be used for general corporate purposes, including exploration, potential
future acquisitions, internal expansion projects, repayment of debt 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.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the
proposed use of proceeds from the offering. Actual developments may differ
materially from those currently anticipated. The forward-looking statements
contained in this press release represent the company's views and expectations
as of the date of this release and should not be relied upon as representing
its views and expectations at any subsequent date.
For further information:
For further information: Robert Doyle, Chief Financial Officer, (416)