EastCoal Inc.: Right to Acquire Menzhinsky Coking Coal Mine
28.09.2011 | Marketwired
![EastCoal Inc.: Right to Acquire Menzhinsky Coking Coal Mine](https://www.goldseiten.de/media/goldseiten-news.jpg)
VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Sept. 28, 2011) - EastCoal Inc. (TSX VENTURE: ECX) (the "Company" or "EastCoal") is pleased to announce that it has entered into a letter of intent with Aponet Enterprises Ltd. ("Aponet") under which EastCoal has acquired the right to purchase a 100% interest in the Menzhinsky Mine located in Ukraine (the "Menzhinsky Mine" or the "Mine").
The Menzhinsky Mine is currently in operation. Production of coking coal from the developed section of the Mine, possibly increased by development of additional sections, will be a strategic fit with the operations and future production of the Company's Verticalnaya high-grade anthracite mine, currently in the construction stage of reactivation. If completed, this transaction will provide the Company with a second significant mine in the Donbass district of Ukraine.
The market demand for coking coal in Ukraine is strong and there are export possibilities through nearby Black Sea ports.
The Menzhinsky Mine has management and a work force in place and has considerable facilities - including two shafts, a rail load out into the mine wash plant and conveyor load out from the mine. The Company believes production from the Mine can be increased considerably. The medium term production target, subject to technical review, is expected to be approximately 1 million tonnes of coal per year. In the initial months it is expected that production from the Mine will be increased marginally to approximately 500 tonnes of coal per day.
To acquire a 100% interest in the Menzhinsky Mine, the Company will pay to Aponet:
i. $250,000 upon signing of the letter of intent; and
ii. $250,000 per month for six consecutive months commencing October 31, 2011 or until earlier execution of a formal acquisition agreement ("Formal Agreement").
In addition, upon closing of the Formal Agreement and transfer of a 100% interest in the Mine, subject to regulatory approval, the Company will:
iii. Pay to Aponet $2,000,000;
iv. Issue to Aponet 4,000,000 common shares of EastCoal and warrants to acquire an additional 4,000,000 common shares of the Company at a price of $0.70 per share for a period of two years;
v. Issue a four-year $4,000,000 convertible note, redeemable after a period of one year, which may be converted into EastCoal shares at a price of $0.65 per common share; and
vi. Assume and pay a debt obligation of US$7,000,000, on a quarterly basis, over a three-year period (US$583,333 per quarter).
Work on a NI 43-101 compliant technical report will commence in October 2011. Until completion of that report, it will not be possible to define the resource tonnage. Presently, the dimensions of the strike are 5 kilometres and 9 kilometres down dip. If the results of the report are favourable, further development phases will be planned.
The technical information contained in this news release has been reviewed and approved by Mr. Colin Stocks, a Qualified Person and Technical Director of the Company.
By Order of the Board,
John Byrne
Chairman and CEO
About EastCoal Inc.
The Company changed its name to EastCoal Inc. in early 2011, to reflect its new strategy of developing coal operations. It is focused on the Donbass coal basin of Ukraine which has large coal reserves and excellent prospects.
EastCoal Inc. is currently developing its 100% owned Verticalnaya anthracite mine.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
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
EastCoal Inc.
John Byrne
Chairman and CEO
604-681-8069
604-685-4675 (FAX)
www.eastcoal.ca