VANCOUVER, Dec. 17 /CNW/ - Western Coal Corp (TSX: WTN, WTN.WT and WTN.DB and AIM: WTN) ("Western" or the "Company") announced today that it has agreed to subscribe for approximately 58.2 million ordinary common shares at 15 pence each in Energybuild Group Plc's (AIM: EBG) ("Energybuild") recent (pnds stlg)14.5M share placement (the "Placing").
Approximately 29.8 million of the shares subscribed by Western were from the conversion of (pnds stlg)4.5 million in loans previously made by Western to Energybuild. As part of the Placing, an additional 28.4 million shares were acquired for cash. In total, this brings Western's participation to 58.2 million shares.
Proceeds from the Placing, along with internally generated cash flows from its operations, will be invested by Energybuild to grow production at its underground mine in Wales to a target of 750,000 tonnes per annum by 2013.
On completion of the Placing, Western will own approximately 124.0 million ordinary common shares, or approximately 54.7% of the share capital of Energybuild.
Western is a substantial shareholder of Energybuild and therefore, Western's subscription to the Placing is a related party transaction under AIM rules. The Board of Directors of Energybuild include Mr. Braam Jonker, Western's Chief Financial Officer, and Mr. John Hogg, senior consultant to Western and recently retired Chief Executive Officer.
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). 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.
Energybuild is a producer of Welsh anthracite and surface mined coal. The Company is presently developing the Aberpergwn underground mine and adjoining underground anthracite coal reserves and resources in South Wales (UK). Energybuild also operates a surface mine and reviewing further possible surface mine sites in the region. Energybuild is listed on the AIM as "EBG". Further information is available at www.energybuild.co.uk.
SOURCE WESTERN COAL CORP.
For further information: For further information: David Jan, Director, Investor Relations, (604) 608-2692, David.Jan@westerncoal.com