TORONTO, June 19, 2012 /PRNewswire/ - Corsa Coal Corp. (TSXV: CSO) ("Corsa" or the "Company") is pleased to announce that it has entered into an agreement with its existing lenders to extend its current US$25 million facility. The revised US$25 million credit facility is a demand facility with a 60 day no demand period. There is no cash interest payable on the loan. The facility continues to be secured with a pledge of the operating subsidiaries and all other terms and conditions remain the same. The Company will pay a fee of US$100,000 in connection with the extension.
Don Charter, President and CEO stated: "Our lenders have been very supportive of the Company, first with the initial loan which was at very favourable terms to the Company and now with this extension at below market rates. They continue to have a bullish outlook for US met coal and are pleased to support the Company while it seeks a long term alternative to the facility on reasonable terms."
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.
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SOURCE Corsa Coal Corp.