Lysander increases construction at Verticalnaya North
Lysander Minerals Corp (C:LYM)
Shares Issued 69,048,797
Last Close 10/12/2010 $0.265
Wednesday October 13 2010 - News Release
Mr. Bryce Porter reports
LYSANDER MINERALS RAMPS UP CONSTRUCTION AT UKRAINE COAL MINE FOLLOWING COMPLETION OF $11.5 MILLION FINANCING
Lysander Minerals Corp. has ramped up construction activities at its Verticalnaya North project. The project represents the first phase of redevelopment of the Verticalnaya anthracite mine in the Donbass coal basin of southeastern Ukraine.
The site has been cleared, a waste tip established and excavation preparatory to the installation of portals for two inclined drifts has been completed. It is expected that the drifts will be completed in mid-2011 and that the first longwall will commence operation early in 2012.
The executive chairman of the company, John Byrne, together with John Conlon, also a director of the company, has been involved in the development of eight coal mines in recent years. Until recently, Mr. Byrne was executive chairman of Western Coal Corp. Under his leadership that company quickly evolved from an early stage development company to a major producer with over $1 billion in market capitalization.
To facilitate the advancement of the project, the company announced in Stockwatch on Oct. 8, 2010, that it has closed a private placement offering of units for gross proceeds of approximately $11.5-million. Additional funds of approximately $17.25-million may be raised upon the exercise of the warrants issued under the offering. At that time, Mr. Byrne stated, "Lysander now has in place a structure for the financing of the reopening of the Verticalnaya mine. We are confident that the warrants will be exercised in a timely manner so that the company will fully equity fund the Verticalnaya North project in line with the NI 43-101 technical report for that project."
The company will make every effort to accelerate production and will also examine other opportunities in Ukraine. It is the company's aim to become a major Ukrainian coal mining company.
