10/29/2014 - 3:48 PM EST - Pacific Coal Resources Ltd. : has signed a debt settlement agreement with Pacific Power Generation Corp. In the first quarter of 2013, the Company signed a memorandum of understanding ("MOU") with PPG and Proelectrica & CIA S.C.A E.S.P, with the purpose of joining efforts for the incorporation of a company dedicated to the generation of electric power, operating with coal produced at the Company's Cerro Largo mine. The Company received a refundable advance of $5.0 million U.S. upon signing the MOU. On August 25, PPG advised the Company of its desire to terminate the MOU. The Company entered into a settlement agreement, effective as of October 15, whereby the Company will issue to PPG 28,090,000 common shares in the capital of the Company, valued at the volume weighted average (market) price of the shares as of the 60 days leading up to the Effective Date, in exchange for forgiveness of the $5.0-million U.S. refund of the advance owed by the Company. Pacific Coal Resources Ltd.
shares V.PAK are trading down $0.02 at $0.36.
