VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2012) -
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Further to a previous news release of December 11, 2012 of EastCoal Inc. (TSX VENTURE:ECX) (the "Company" or "EastCoal") announcing the application for the admission (the "Admission") to the AIM market of the London Stock Exchange plc ("AIM") of the Company's existing share capital and additional common shares in the capital of the Company to be issued pursuant to a brokered private placement (the "Placing") to be completed concurrently with the Admission, the Company is pleased to announce that a placing agreement was entered into between the Company, the directors of the Company and Cenkos Securities plc ("Cenkos") whereby Cenkos will act as broker for the Placing. The Company is also pleased to announce that the final AIM admission document of the Company has been published and will be provided to placees participating in the Placing.
As previously announced, the closing of the Placing and Admission will be subject to certain conditions. The Placing and Admission are still currently expected to close on or about December 28, 2012.
Further to a previous news release of December 20, 2012 of the Company announcing the proposed conversion (in accordance with Policy 4.3 of the TSX Venture Exchange) into 10,414,848 common shares (the "Settlement Shares") in the capital of the Company of a CDN$2,000,000 loan (the "Salida Loan") received by the Company from Salida Capital LP ("Salida") (on behalf of a fund managed by Salida), together with all accrued but unpaid interest thereon (the "Shares for Debt Settlement"), the Company wishes to clarify that the conversion of the Salida Loan, together with all accrued but unpaid interest thereon, will be effected with deemed issue price per Settlement Share of CDN$0.1936705 rather than CDN$0.194.
The Shares for Debt Settlement will occur concurrently with, and be conditional upon, the closing of the previously announced Admission and Placing.
By Order of the Board,
John Byrne, Chairman
About EastCoal Inc.
EastCoal Inc. is currently producing coking coal from the Menzhinsky mine, which is operated by its 100% owned subsidiary Inter-Invest Coal, and developing the Verticalnaya anthracite mine, which is operated by its 100% owned subsidiary East Coal Company.
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward‐looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking information. These and all subsequent written and oral forward-looking information are based on estimates and opinions on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, EastCoal assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
Neither the 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.