Grande Cache Coal Corporation

Grande Cache Coal Corporation

April 05, 2006 09:37 ET

Grande Cache Coal Corporation Announces Closing of $27 Million Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - April 5, 2006) -


Grande Cache Coal Corporation (TSX:GCE) ("Grande Cache Coal" or the "Corporation") announced today the closing of its previously announced "bought deal" equity financing. At closing, a total of 10,000,000 units (the "Units") of the Corporation were issued at a price of $2.70 per Unit for gross proceeds of $27 million, which includes the full exercise by the underwriters of their option to purchase an additional 2,500,000 Units. Each Unit consisted of one common share ("Common Share") and one-half of one common share purchase warrant of the Corporation, each whole warrant ("Warrant") entitling the holder thereof to acquire one Common Share at a price of $3.40 per share until April 5, 2007. The Warrants are posted for trading on the Toronto Stock Exchange under the symbol "GCE.WT".

The net proceeds of the offering will be used by the Corporation to fund its ongoing exploration and development activities, capital projects and for general working capital purposes.

The offering was underwritten by a syndicate led by Salman Partners Inc. and including BMO Nesbitt Burns Inc. As part of the consideration for their services, the underwriters were issued warrants to purchase an aggregate of 500,000 Common Shares at an exercise price of $3.40 per share until April 5, 2007.

Grande Cache Coal is an Alberta based metallurgical coal mining company whose experienced team of coal professionals have developed a sustainable, long-term mining operation to produce metallurgical coal for the export market from coal leases covering over 18,600 hectares in the Smoky River Coalfield located in west-central Alberta. Grande Cache Coal'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 the solicitation of any offer to buy the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

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 Corporation's control. Many of these risks and uncertainties are described in Grande Cache Coal's 2005 annual information form, Grande Cache Coal's management's discussion and analysis and other documents Grande Cache Coal files with the Canadian securities authorities.

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

Contact Information

  • Grande Cache Coal Corporation
    Rhonda M. Bennetto
    Director, Investor & Corporate Relations
    (403) 543-7070
    (403) 543-7092 (FAX)