VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 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
EastCoal Inc. (TSX VENTURE:ECX) (the "Company") is pleased to announce that, subject to regulatory approval, it will be issuing a debenture ("New Debenture") to Surrey Dynamics Limited ("SDL").
The Company previously issued a three-year convertible debenture ("Original Debenture") dated November 26, 2009 to SDL in the principal amount of US$3,000,000. The Company intends to extend the maturity date of the Original Debenture to December 17, 2012 and, subject to the Company's payment of US$1,500,000 of the principal amount owing under the Original Debenture to SDL and regulatory approval, rollover the remaining US$1,500,000 of the principal amount and all accrued but unpaid interest owing under the Original Debenture into the New Debenture. The Original Debenture will be terminated concurrently with the issuance of the New Debenture. The Company and SDL signed a Supplemental Indenture today amending the terms of the Original Debenture and setting out the terms upon which the Company will be issuing the New Debenture.
The principal of the New Debenture will be convertible into common shares of the Company at the price of $0.23 per share. Any accrued but unpaid interest on the principal amount of the New Debenture will be convertible into common shares of the Company at the market price of the shares at the time of conversion. The debenture will bear interest at 10% per annum payable quarterly, and the term of the New Debenture will be two years.
The issuance of the New Debenture is expected to occur on or around December 17, 2012.
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.