CANONSBURG, PA, June 2, 2016 /CNW/ - Corsa Coal Corp. (TSXV: CSO) ("Corsa" or the "Company") is pleased to announce that it has closed its previously announced private placement of 63,000,000 common shares ("Common Shares") of the Company, 56,000,000 of which were closed on a brokered basis and 7,000,000 of which were closed on a non-brokered basis, for gross proceeds of C$3.15 million at C$0.05 per Common Share ("Private Placement").
Paradigm Capital Inc. (the "Agent") acted as lead agent for the brokered portion of the Private Placement. The Company paid the Agent aggregate cash commissions of C$168,000 and issued a total of 3,360,000 compensation warrants ("Compensation Warrants") in connection with the Private Placement. Each Compensation Warrant entitles the Agent to purchase one Common Share at C$0.05, exercisable for a period of 24 months. The proceeds of the Private Placement are being used to fund working capital and for general corporate purposes. The Private Placement was originally announced on April 18, 2016.
The TSX Venture Exchange ("TSXV") has granted conditional approval of the listing of the Common Shares issued under the Private Placement subject to final acceptance. Such Common Shares, and the Common Shares issued on the exercise of Compensation Warrants, are subject to resale restrictions pursuant to applicable securities laws and requirements, as well as stock exchange rules, and will not be freely tradeable until October 2, 2016.
Information about Corsa
Corsa is one of the leading suppliers of premium quality metallurgical coal, an essential ingredient in the production of steel, which is necessary for the secular trends in global urbanization. Our core business is supplying metallurgical coal with the highest safety, yield, and strength characteristics to domestic steel producers while being a strategic source of supply in the Atlantic and Pacific basin markets. Corsa also offers high heat content, low delivered cost coal to major utilities and industrial users in the Southeast region of the U.S.
The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered thereunder or unless an exemption from registration is available.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively, "forward looking statements") and which are based on the expectations, estimates and projections of management of Corsa as of the date of this press release unless otherwise stated. Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "plans", "projections", "outlook", "intends", "may", "could", "would", "might", "will" and similar expressions. More particular and without limitation, this press release contains forward-looking statements and information concerning the use of proceeds from the Private Placement.
By their very nature, forward looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward looking statements will not prove to be accurate. Do not unduly rely on forward looking statements, as a number of important factors, many of which are beyond Corsa's control, could cause actual results to differ materially from the estimates and intentions expressed in such forward looking statements.
Forward looking statements speak only as of the date those statements are made. Except as required by applicable law, Corsa does not assume any obligation to update, or to publicly announce the results of any change to, any forward looking statement contained herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward looking statements.
The TSXV has in no way passed on the merits of this news release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Corsa Coal Corp.
For further information: please contact: Kevin Harrigan, Chief Financial Officer and Corporate Secretary, Corsa Coal Corp., 1-724-754-0028, firstname.lastname@example.org, www.corsacoal.com