Colonial Coal International Corp. {TSX.V: CAD} has arranged a non-brokered private placement of up to 50 million units of the corporation at a subscription price of 15 cents per unit, for gross proceeds of up to $7.5-million.
Comment
Amazingly this is the very first financing ever done by Colonial Coal since their public listing. CAD has been prudently run by a management team focused on delivering shareholder value, and who hold a large shareholding in the company themselves.
CAD are rightly raising now, to refinance their treasury and finance a drill program on the highly prospective Flatbed property, where there is the prospect of adding significant tonnage with a relatively modest drill program.
A healthy treasury also deters bottom fishing predators, and ensures that any offers received are sensible.
Colonial Coal arranges $7.5-million private placement
2017-01-17 15:31 PT – News Release
Mr. David Austin reports
COLONIAL COAL INTERNATIONAL CORP. ANNOUNCES NON-BROKERED PRIVATE PLACEMENT
Colonial Coal International Corp. {TSX.V: CAD} has arranged a non-brokered private placement of up to 50 million units of the corporation at a subscription price of 15 cents per unit, for gross proceeds of up to $7.5-million.
Each unit will comprise one common share in the capital of the corporation and one-half of a transferable common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of the corporation at an exercise price of 30 cents per common share for a period of three years from the date of issue.
Finders’ fees are expected to be payable in connection with the completion of the private placement in accordance with TSX Venture Exchange policies. The corporation intends to use the net proceeds of the private placement to finance its 2017 exploration program and for general corporate and working capital purposes.
Closing of the private placement is subject to a number of conditions, including receipt of the approval of the exchange. The private placement is expected to close by Feb. 2, 2017.
All securities issued in connection with the private placement will be subject to a statutory hold period of four months plus one day from the date of issuance of the securities in accordance with applicable Canadian securities legislation.
About Colonial Coal
Colonial Coal is a publicly traded coal corporation in British Columbia that focuses primarily on coking coal projects. The northeast coal block of British Columbia, within which the corporation’s projects are located, hosts a number of proven deposits and has been the subject of M&A (merger and acquisition) activities by Xstrata, Walter Energy, Anglo-American and others.
Additional information can be found on the corporation’s website or by viewing the corporation’s filings on SEDAR.
We seek Safe Harbor.