Western Canadian Coal Corp announces that strong operating cash flows has enabled a recent repayment of the US $30 million short term debt facility that was provided by Audley European Opportunities Master Fund.
In addition, as a result of the expected continuation of strong operating cash flows, the Company has entered into an agreement with Scotia Capital for a US $50 million credit facility. This facility will provide the Company with added financial flexibility in managing its cash flows.
“With the record prices currently being received in the new coal year, we are generating very strong cash flows which has enabled us to repay the short-term debt facility from Audley early”, said John Hogg, President and CEO of Western Canadian Coal Corp. “We have also taken advantage of our strengthened balance sheet to acquire financing that will help us both to commence operations at Willow Creek Mine by October 2008 and to aid in the expansion of the facilities at Willow Creek Mine sooner.”
About Western Canadian Coal
Western Canadian Coal Corp. produces 3.7 million tonnes of high quality metallurgical coal from three mines located in the northeast of British Columbia. The Company also has interests in various coal properties in northern and southern British Columbia and a 50% interest in the Belcourt Saxon Limited Partnership, which was formed to explore and develop the Belcourt and Saxon group of properties in northern BC. Currently, these properties provide the Company with an estimated 15 years of coal reserves at current production levels.
For further information
David Jan, Manager, Investor Relations & Corporate Development, Phone: (604) 608-2692, Email: email@example.com