Grande Cache Coal Corporation

Grande Cache Coal Corporation

February 25, 2005 16:51 ET

Grande Cache Coal Corporation Announces Closing of $40 Million Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Feb. 25, 2005) -


Grande Cache Coal Corporation (GCE-TSX) ("Grande Cache" or the "Company") is pleased to
announce that it has closed its previously announced underwritten private placement. At
closing a total of 2,942,000 units ("Units") of the Company were issued at a price of
$13.60 per Unit for gross proceeds of $40 million, which includes the full exercise by the
underwriters of their option to purchase an additional 368,000 Units. 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 on or before February 27, 2006. All
of the common shares and warrants issued by Grande Cache pursuant to the private
placement are subject to a four month hold period and are subject to restrictions on
resale prior to June 26, 2005.

The underwritten private placement was co-led by Salman Partners Inc. and
Sprott Securities Inc.

The Company will use the net proceeds from the financing to fund the feasibility
study for mine expansion, ongoing exploration and permitting, process plant
enhancements and for general working capital purposes.

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 or the solicitation of 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 States
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, including statements
relating to the intended use of the net proceeds from the financing. 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 authorities.

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)