Lysander extends East Coal option agreements to Nov. 30
Lysander Minerals Corp (C:LYM)
Shares Issued 23,046,130
Last Close 11/2/2009 $0.36
Friday November 06 2009 - News Release
Mr. Bryce Porter reports
OPTION AMENDMENTS AND EXERCISES- UKRAINE ACQUISITION
Lysander Minerals Corp. has amended the option agreements under which it has the right to acquire all of the charter capital of Skhidna Vugilna Kompania (East Coal) of Ukraine, the owner of the Verticalnaya anthracite mine in the Donbass region of Ukraine.
The company is also pleased to announce that, as approved by shareholders on Sept. 30, 2009, and subject to final regulatory and TSX Venture Exchange approvals, it has initiated the exercise of its option (the UEL option) to acquire all of Ukraine Energy Ltd., which holds a 51-per-cent interest in East Coal. It has also initiated exercise of its option to acquire the remaining 49-per-cent interest in East Coal from Surrey Dynamics Ltd. of the United Kingdom.
Regulatory and registration processes required for the option exercises are proceeding.
The amendments extend the option agreements to Nov. 30, 2009. Surrey Dynamics acknowledges that it will have no right of representation on the company's board of directors. No additional director will now be appointed as a consequence of the option exercises.
On closing of the UEL option, the company will issue 22 million common shares to Ukraine Coal PLC of the United Kingdom.
On closing of the minority option, the company will issue five million common shares and an unsecured three-year, convertible $3-million (U.S.) debenture, bearing interest at 2 per cent over Libor. The debenture may be converted by the holder into eight million common shares of the company at any time. Surrey Dynamics has requested terms in addition to the agreed terms for the convertible debenture, which request is expected to be resolved shortly.
The company intends to develop and reopen the Verticalnaya mine to high modern standards. There are considerable assets and infrastructure; mine management and an initial work force are in place and mine planning, permits and licences are substantially complete.
A National Instrument 43-101 technical report completed in September, 2008, projects that production should increase in stages, as long walls are developed, to exceed three million tonnes of saleable anthracite per year. Average operating cost was projected to be $31 (U.S.) per tonne and the net present value, discounted at 12 per cent, was projected to be $352-million (U.S.). The report is available on SEDAR and the company's website.
