Resource Capital Fund V L.P. Acquires Additional Shares of Buffalo Coal Corp.

Jul 06, 2015, 14:57 ET from Resource Capital Fund V L.P.

DENVER, July 6, 2015 /CNW/ - Resource Capital Fund V L.P. ("RCF") reports that on July 2, 2015, in connection with a previously announced secured convertible loan facility in the aggregate principal amount of US$25 million (the "Facility"), and in satisfaction of interest and principal payment obligations under the Facility, RCF acquired ownership of 9,700,895 additional common shares ("Facility Shares") in the capital of Buffalo Coal Corp. ("Buffalo").

At a meeting of Buffalo's shareholders held on June 19, 2015, disinterested shareholders approved amendments to the Facility to, among other things, increase the principal amount from US$25 million to US$29 million, increase the interest rate from 12% to 15%, decrease the conversion price from C$0.1446 to C$0.0469 and issue the Facility Shares to RCF.

The Facility Shares collectively represent 10.5% of the issued and outstanding common shares in the capital of Buffalo. At a conversion price of C$0.0469, the Facility Shares were valued at a 25% discount to the 5-day volume-weighted average trading price of the common shares on the Toronto Stock Exchange on January 30, 2015 (the last trading day prior to the announcement of the Facility amendments).

As of the close of business today, RCF owns in the aggregate, a total of 65,924,480 common shares of Buffalo, representing approximately 71.6% of the issued and outstanding common shares in the capital of Buffalo. Prior to acquiring the Facility Shares, RCF owned 56,223,585 Buffalo common shares, or approximately 68.2% of the issued and outstanding Buffalo common shares.

RCF acquired the Facility Shares for investment purposes. Depending on market conditions and other factors, including additional future conversions of interest payments under the Facility or the exercise of previously issued convertible securities, RCF may from time to time acquire additional securities of Buffalo or dispose of securities of Buffalo in the open market, by private agreement, or otherwise.

SOURCE Resource Capital Fund V L.P.