Lysander Minerals Corporation
TSX VENTURE : LYM

Lysander Minerals Corporation

March 16, 2009 11:18 ET

Lysander Minerals Corporation: Improved Option Agreement, Good Progress in Ukraine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 16, 2009) - Lysander Minerals Corporation (TSX VENTURE:LYM) ("Lysander") is pleased to announce that it has completed an agreement with Ukraine Coal Ltd ("UC") of the United Kingdom that amends and extends Lysander's option to acquire UC's 100% interest in Ukraine Energy Limited ("UEL") of Ukraine.

UEL has a 51% interest in Skhidna Vugilna Kompania ("East Coal") which plans to reactivate the Verticalnaya anthracite mine in Ukraine's Donbass region.

Subject to regulatory approval, Lysander may now acquire UEL on or before June 30, 2009 by issuing 22 million of its common shares to UC. A royalty of US$1 per tonne sold will be payable by UEL from its share of future distributions of profit by East Coal. The previous agreement had required consideration of $12 million, one half in cash and one half as a convertible note, to acquire UEC.

Over the past 6 months, there has been significant progress in this transaction. A technical report, NI 43-101 compliant, has been filed and can be viewed at www.sedar.com and on Lysander's website (www.lysandercorp.com). The report projects return on investment (ROI) in excess of 30% and a net present value that is comfortably over US$300 million using a 12% discount rate, indicating the large potential of the mine. East Coal Company has had considerable success in developing detailed plans and in working with supervisory, licensing and permitting agencies. Licenses and permits necessary for development and mining activities are now substantially all in place.

In response to the deterioration in financial markets, Lysander and East Coal are assessing methods to develop early, profitable production at a reduced capital cost as a first stage. Full scale development is intended to follow as financial markets improve. Plans for the first stage should be submitted shortly for additional review by Ukraine authorities. Arrangements for the long-term rental of certain mine infrastructure assets are also well advanced and are expected to be concluded before June 30.

The project has established reserves, existing mine assets, a premium product, an existing competent team to direct operations, licenses and permits necessary for operations and high projected returns on investment.

Discussions are in progress regarding funding for the first stage.

On behalf of the Board,

Bryce M.A. Porter, President and CEO

About Lysander

Lysander is well positioned to take advantage of development opportunities, commencing with the Verticalnaya mine. In June 2008, Lysander added to its Board of Directors Mr. Charles Pitcher, a director and former CEO of Western Canadian Coal Corp. (TSX VENTURE:WTN), who is a mining engineer and manager with extensive experience, and Mr. John Conlon, whose directorships include Cambrian Mining PLC, Western Canadian Coal Corp. and Coal International PLC, who has extensive experience in underground mining operations and the management and financing of mines. Mr. John Newton, merchant banker, has been a director of the Company since 2005.

The Verticalnaya coal mine is situated in the Lugansk region of Ukraine. The mine previously produced anthracite, a high quality, premium priced coal. It is on care and maintenance after a period of low production following the break-down of the Soviet Union.

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The TSX - Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Lysander Minerals Corporation
    Bryce M.A. Porter
    President and CEO
    (604) 681-8069
    (604) 685-4675 (FAX)
    Website: www.lysanderminerals.com