11:36 AM EST - Western Canadian Coal Corp. : Western Canadian Coal Corp. said that it has entered into an agreement to sell AGD Mining Pty Ltd. to Mandalay Resources Corp.
Mandalay will purchase all of the issued and outstanding ordinary shares of AGD for proceeds of 24 million common shares of Mandalay at a price of $0.25 per shares and warrants to purchase 20 million common shares of Mandalay for five years at a price of $0.31 per share, and promissory note of $4 million. Mandalay will finance the acquisition from a private placement of up to 46 million units of common shares at a price of $0.25 per unit for gross proceeds of up to $11.50 million. Each unit will consist of one Mandalay common share and one warrant to acquire one Mandalay common share at a price of $0.465 per share. Western has agreed to subscribe for 20 million units under the private placement for an aggregate subscription price of $5 million. Upon completion of the acquisition and the private placement, Western will own about 44 million common shares, which represents about 46.5% of the total common shares outstanding in Mandalay. Western Canadian Coal Corp.
shares T.WTN are trading down $0.10 at $2.97.
