Royal Coal Corp.
TSX VENTURE : RDA
FRANKFURT : RLC

Royal Coal Corp.

April 11, 2011 17:21 ET

Royal Coal Obtains Receipt for Final Prospectus

TORONTO, ONTARIO--(Marketwire - April 11, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

Royal Coal Corp. (TSX VENTURE:RDA)(FRANKFURT:RLC) ("Royal Coal" or the "Company") announces that it has obtained a receipt for its final prospectus filed in the Provinces of British Columbia, Alberta, Manitoba and Ontario. The prospectus qualifies for distribution 138,000,000 common shares (the "Common Shares") of the Company and 69,000,000 common share purchase warrants (the "Warrants") of the Company issuable upon the automatic exercise of 138,000,000 previously issued special warrants (the "Special Warrants") of the Company. Each Warrant will entitle the holder to acquire one Common Share at a price of $0.335 until February 23, 2013. As previously announced, the Special Warrants were issued by way of a private placement through a syndicate of agents led by Cormark Securities Ltd. and including Haywood Securities Inc. and Northern Securities Inc. which closed on February 23, 2011 at a price of $0.25 per Special Warrant, resulting in gross proceeds to the Company of approximately $34.5 million.

The TSX Venture Exchange has approved the listing of the Common Shares distributed under the prospectus and the Common Shares issuable upon the exercise of the Warrants. The Company has also applied to list the Warrants distributed under the prospectus. Listing of the Warrants will be subject to the Company fulfilling all of the listing requirements of the TSXV.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Royal Coal

Royal Coal is a coal exploration and production company, headquartered in Toronto, Ontario, Canada with a regional office in Hazard, Kentucky, U.S.A. whose primary business focus is developing producing surface coal mining operations in the Central Appalachian coal producing region of the United States, which includes parts of West Virginia, Virginia, Kentucky, Ohio, and Tennessee.

Neither 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.

Contact Information

  • Royal Coal
    Tom Griffis
    Chairman
    (416) 861-8775

    Royal Coal
    Richard Buzbuzian
    Investor Relations
    (647) 501-3290