Grande Cache Coal Corporation

Grande Cache Coal Corporation

February 09, 2005 18:17 ET

Grande Cache Coal Corporation Announces Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Feb. 9, 2005) -


Grande Cache Coal Corporation ("Grande Cache" or the "Company") is
pleased to announce that it has entered into an agreement with a
syndicate of underwriters led by Salman Partners Inc. and including
Sprott Securities Inc. pursuant to which the underwriters have agreed
to purchase 2,574,000 units ("Units") of the Company on an
underwritten private placement basis at a price of $13.60 per Unit
for aggregate gross proceeds of $35 million. Each Unit consists of
one common share and one half of one common share purchase warrant
of the Company, each whole common share purchase warrant entitling
the holder to acquire one common share of the Company at a price of
$16.25 per share for a period of 12 months from the closing date of
the private placement. Grande Cache has also granted the underwriters
an option to purchase up to an additional 368,000 Units at $13.60 per
Unit at any time up to 48 hours prior to closing.

Proceeds from the financing will be used to fund the feasibility study
for mine expansion, ongoing exploration and permitting, process plant
enhancements and for general working capital purposes.

The private placement is scheduled to close on or about February 25,
2005 and is subject to certain conditions including satisfactory due
diligence by the underwriters and the receipt of customary regulatory
approvals. The securities issued pursuant to the private placement will
be subject to a four month hold period in accordance with Canadian
securities laws.

Grande Cache is an Alberta based metallurgical coal mining company
whose experienced team of coal professionals is developing a long-term
mining operation to produce metallurgical coal for the export market
from Grande Cache's coal leases covering over 15,000 hectares in the
Smoky River Coalfield located in west-central Alberta. Grande Cache's
common shares are listed on the Toronto Stock Exchange under the
trading symbol "GCE".

This news release shall not constitute an offer to sell or to buy
securities in any jurisdiction. The securities referred to herein have
not been and will not be registered under the United Sates Securities
Act of 1933, as amended (the "Securities Act"), and may not be offered
or sold in the United States unless they are registered under the
Securities Act or pursuant to an available exemption therefrom. No
public offering of securities is being made in the United States.

This news release contains forward-looking statements. The forward-
looking statements are not guarantees of future performance and undue
reliance should not be placed on them. Actual results may differ
materially as a result of any number of factors and uncertainties, many
of which factors are beyond the Company's control. Many of these risks
and uncertainties are described in Grande Cache's 2004 Annual
Information Form, Grande Cache's Management's Discussion and Analysis
and other documents Grande Cache files with the Canadian securities

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Grande Cache Coal Corporation
    Robert H. Stan
    President and Chief Executive Officer
    (403) 543-7070
    Grande Cache Coal Corporation
    Thomas E. Pierce
    Vice President, Finance and Chief Financial Officer
    (403) 543-7070
    Grande Cache Coal Corporation
    Suite 250, 703 - 6th Avenue S.W.
    Calgary, Alberta T2P 0T9 Canada
    (403) 543-7070
    (403) 543-7092 (FAX)