TSX: WTN & WTN.DB and AIM: WTN
VANCOUVER, Aug. 24 /CNW/ - Western Canadian Coal Corp. (TSX WTN & WTN.DB;
AIM: WTN) (the "Company") announces the following:
The Company today is providing an update on the status of its cash and
cash equivalents balances in light of the evolving events and uncertainty in
global credit markets. The Company reports that it has cash and short-term
investments of approximately $42 million of which $5 million is invested in
Canadian asset-backed commercial paper ("ABCP) with the remaining investments
of $25 million in banker acceptances. This represents 12% of the Company's
current cash position. These investments met the Company's investment policy
and were rated by the Dominion Bond Rating Service ("DBRS") as R1-High. A
R1-High rating, per the DBRS, is of the highest credit quality and indicates
an entity possessing unquestionable ability to repay current liabilities as
they come due. These investments continue to be rated as R1-High by the DBRS,
but since August 16, 2007 have been placed "Under Review with Developing
The Company's portfolio of ABCP, issued through HSBC, consists of a $3
million Selkirk Trust ABCP and a $2 million Symphony Trust ABCP. The $3
million Selkirk Trust ABCP matured on August 21, 2007 and remains outstanding.
The $2 million Symphony Trust ABCP matures in September 2007. As mentioned
above, the balance of the Company's investments are in HSBC banker acceptances
rated R1-High by DBRS.
The Company's operations have not been impacted to date.
This release may contain forward-looking statements that may involve
risks and uncertainties. Such statements relate to the Company's expectations,
intentions, plans and beliefs. As a result, actual future events or results
could differ materially from those suggested by the forward-looking
statements. Readers are referred to the documents filed by the Company on
SEDAR. Such risk factors include, but are not limited to changes in commodity
prices; strengths of various economies; the effects of competition and pricing
pressures; the oversupply of, or lack of demand for, the Company's products;
currency and interest rate fluctuations; various events which could disrupt
the Company's construction schedule or operations; the Company's ability to
obtain additional funding on favourable terms, if at all; and the Company's
ability to anticipate and manage the foregoing factors and risks.
Additionally, statements related to the quantity or magnitude of coal deposits
are deemed to be forward-looking statements. The reliability of such
information is affected by, among other things, uncertainties involving
geology of coal deposits; uncertainties of estimates of their size or
composition; uncertainties of projections related to costs of production; the
possibilities in delays in mining activities; changes in plans with respect to
exploration, development projects or capital expenditures; and various other
risks including those related to health, safety and environmental matters.
WESTERN CANADIAN COAL CORP.
President and Chief Executive Officer
For further information:
For further information: John Hogg, President & CEO or Jeff Redmond,
Director of Finance, Western Canadian Coal Corp., 900 - 580 Hornby Street,
Vancouver, B.C., V6C 3B6, CANADA, Phone (604) 608-2692, Fax (604) 629-0075,
Email firstname.lastname@example.org, www.westerncoal.com