GC-Global Capital Corp.
TSX VENTURE : GDE.A

GC-Global Capital Corp.

August 26, 2010 09:30 ET

GC-Global Capital Corp. Announces that its Client Company, CDR Minerals Inc. Has Completed a Business Combination and Concurrent $4,685,000 Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Aug. 26, 2010) - GC-Global Capital Corp. ("Global Capital") (TSX VENTURE:GDE.A) is pleased to announce that its client company, CDR Minerals Inc. ("CDR") and Royal Coal Corp. ("Royal Coal")(TSX VENTURE:RDA) announced the completion of the amalgamation (the "Business Combination") of CDR with Royal Coal's wholly-owned subsidiary to continue as one company under the Business Corporations Act (Ontario) (the "OBCA"). In connection with the completion of the Business Combination, Amalfi Capital Corporation ("Amalfi") (TSX VENTURE:ALI.P) continued under the OBCA, changed its name to "Royal Coal Corp." and consolidated its previously outstanding common shares on the basis of two common shares of Amalfi ("Amalfi Shares") for one common share of Royal Coal (the "Consolidation").

Concurrent with the closing of the Business Combination on August 12, 2010, CDR completed its previously announced private placement of $4,685,000 in gross proceeds, representing an aggregate of 23,425,000 units (the "CDR Units") at a price of $0.20 per Unit (the "Private Placement"). Each CDR Unit is comprised of one common share of CDR (the "CDR Shares") and one common share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to purchase one common share of CDR at a price of $0.20 for a period of five years from the closing of the Private Placement. Pursuant to the terms of the Private Placement, the agents, along with other placement agents, were paid an aggregate of $226,000 in cash commissions and were issued an aggregate of 1,030,300 broker warrants, each exercisable to purchase one CDR Share at $0.20 for a period of 60 months from the closing of the Private Placement.

Royal Coal Corp. is an exploration and production company, headquartered in Toronto, Ontario, Canada with a regional office in Hazard, Kentucky, U.S.A. Royal Coal is concentrating its efforts on developing producing surface coal mining operations in the Central Appalachian coal producing region of the United States, which includes parts of West Virginia, Virginia, Kentucky, Ohio, and Tennessee. Mining at Royal Coal's Big Branch (Cheyenne) surface mine has been continuous since the acquisition of the mine on October 1, 2009. Royal Coal has averaged coal production of 30,553 tons per month over the past 8 months and the proceeds of the CDR Private Placement will be used to increase production to a targeted 65,000 tons per month beginning October 2010. Central Appalachia's history of producing large volumes of thermal and metallurgical coal, along with the under-utilized coal infrastructure already in place make the area ideal for the implementation of Royal Coal's business model. Coal assets in the area can be acquired and brought into production relatively quickly.

GC-Global Capital Corp.'s convertible debenture with CDR in the amount of $375,000 was amended such that $25,000 was paid on closing of the Private Placement and the balance of the principal will be repaid over the period ending December 31, 2011. The conversion price is equal to a 25% discount to CDR's private placement and is convertible into one (1) common share of the public company. 

About GC-Global Capital Corp.

Global Capital is a merchant bank which provides bridge loan services (asset back/collateralized financing), to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology.

Royal Coal Corp.

Royal Coal Corp. is an exploration and production company, incorporated pursuant to the Business Corporations Act (Ontario), headquartered in Toronto, Ontario, Canada with a regional office in Hazard, Kentucky, U.S.A. Royal Coal is concentrating its efforts on developing producing surface coal mining operations in the Central Appalachian coal producing region of the United States, which includes parts of West Virginia, Virginia, Kentucky, Ohio, and Tennessee.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • GC-Global Capital Corp.
    Jason G. Ewart
    (416) 488-7760
    www.gcglobalcapital.ca
    or
    Royal Coal Corp.
    Tom Griffis
    Chairman
    (416) 861-8775