TORONTO,
May 8, 2013 /CNW/ - Pacific Coal
Resources Ltd. (TSXV: PAK) is pleased to announce a proposed
private placement of units, each unit consisting of one common
share of Pacific Coal and one common share purchase warrant of
Pacific Coal at a price of C$1.10 per
unit for aggregate proceeds of US$4,000,000. Each warrant entitles the holder to
purchase one common share of the Company at an exercise price of
C$1.10 for a period of five years
from the date of issuance.
The private placement is being undertaken on a
non-brokered basis with a sole purchaser who will be subscribing
for the entire amount of the offering. The transaction is a
"related party transaction" for the purposes of Multilateral
Instrument 61-101 - Protection of Minority Share Holders in
Special Transactions ("MI 61-101") as the purchaser is
controlled by a combination of Pacific Rubiales Energy Corp. and
Blue Pacific Assets Corp., both of whom are principal shareholders
of the Company. The Company intends to rely on an exemption from
the requirement to obtain a formal valuation and minority
shareholder approval prescribed by MI 61-101 in respect of the
private placement, as the Company has determined that the fair
market value of the private placement does not exceed 25% of the
Company's market capitalization as calculated and determined in
accordance with MI 61-101.
The private placement is subject to TSXV
approval and is expected to close on or about May 15, 2013.
About Pacific Coal Resources Ltd.
Pacific Coal Resources Ltd. is a
Canadian-based mining company engaged in the acquisition,
exploration and production of coal and coal-related assets from
properties located in Colombia.
The Company's common shares and warrants are listed on the TSX
Venture Exchange and trade under the symbol "PAK" and "PAK.WT"
respectively.
Forward Looking Information:
This news release contains "forward-looking
information", which may include, but is not limited to, statements
with respect to the future financial or operating performance of
the Company and its projects. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or believes" or
variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Pacific Coal to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements.
Forward-looking statements contained herein are made as of the date
of this press release and Pacific Coal disclaim, other than as
required by law, any obligation to update any forward-looking
statements whether as a result of new information, results, future
events, circumstances, or if management's estimates or opinions
should change, or otherwise. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking
statements.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
SOURCE Pacific Coal Resources Ltd.