Corsa Coal Announces US$8 Million Private Placement

Corsa Coal (TSXV:CSO) has entered subscription agreements with Quintana Energy Partners, Sprott Resource Partnership, Lorito Holdings and Zebra Holdings and Investments to complete a non-brokered private placement for proceeds of roughly US$8 million.
As quoted in the press release:

In connection with the Private Placement, Corsa’s wholly-owned subsidiary Wilson Creek Holdings, Inc. (“WCH”) has entered into a second amending agreement (the “Second Amending Agreement”) to amend certain terms of the credit agreement (the “Credit Agreement”) governing the US$25 million credit facility (the “Facility”) made available by lenders, including SRLC., to WCH.
As part of the Private Placement, Quintana has agreed to acquire 51,936,000 Common Shares for a total of US$2.0 million, Sprott Resource has agreed to acquire 51,936,000 Common Shares for a total of US$2.0 million, Zebra and Lorito have agreed to acquire an aggregate of 51,936,000 Common Shares for a total of US$2.0 million and SRLC has agreed to acquire an aggregate of 51,936,000 Common Shares for a total of US$2.0 million. SRLC will receive an additional 7,790,400 Common Shares (the “Fee Shares”) in connection with entering into the Second Amending Agreement.

Corsa Coal CEO, George Dethlefsen, said:

We are pleased to have the support and participation of our largest three investors as well as our senior lender in this financing round. This financing strengthens Corsa’s liquidity as we look to position the Company for growth when market fundamentals recover.  While the operating environment for coal producers remains highly challenging, we have seen a rise in spot pricing for hard coking coal in the past two months.  This move has been driven by supply cuts globally, an improving exchange rate for U.S. exporters, and improving fundamentals in the steel sector.

Click here for the full press release.