TORONTO, June 26, 2012 /PRNewswire/ - Corsa Coal Corp. (TSXV: CSO) ("Corsa" or the "Company") is pleased to announce that it has completed a financing which refinanced the Company's existing US$25 million bridge facility.
Don Charter, President and CEO, stated that: "The Company has completed a financing with a syndicate of lenders, for which Sprott Resource Lending Partnership ("Sprott") acts as agent, to refinance the existing US$25 million bridge loan". The new US$25 million credit facility is a two year senior secured facility with interest at ten percent per annum. The Company has issued a total of 5,281,690 shares in satisfaction of certain fees payable to Sprott. In order to renew the facility for the second year the Company would pay a fee to Sprott of US$1.5 million payable in shares at the then current ten day VWAP less a 5% discount. The financing contains customary representations, and customary negative and other covenants for facilities of this nature including a limitation on further debt beyond a further US$8 million of equipment leasing. The facility is secured with a pledge of the operating subsidiaries and a first charge on the material assets.
Information about Corsa
Corsa's main operating subsidiaries are Wilson Creek Energy LLC and Maryland Energy Resources LLC based in Somerset County, Pennsylvania. Its primary business is the mining, processing and selling of metallurgical coal, as well as actively exploring, acquiring and developing resource properties consistent with its coal business.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Corsa Coal Corp.