Corsa Coal Upsizes Private Offering of Common Shares

October 07, 2016

Coal-to-Steel Company Responds to Demand for Private Offering Common Shares

CANONSBURG, PA, Oct. 7, 2016 /CNW/ –Corsa Coal Corp. (TSXV:CSO) (“Corsa” or the “Company“) is pleased to announce that it has increased the size of its previously announced brokered private placement to $20,000,000.

Pursuant to an amended engagement, the syndicate of agents lead by Paradigm Capital Inc. (the “Lead Agent“), and including GMP Securities Inc. and Pareto Securities Limited (collectively with the Lead Agent, the “Agents“), will sell, by way of a private placement on a best efforts basis, common shares (the “Common Shares“) of the Company at a price of $0.10 (the “Issue Price“) per Common Share for gross proceeds of up to $20,000,000 (the “Offering“). The Agents have been granted the option (the “Agents’ Option“) to sell up to an additional 15% of the number of Common Shares issuable in the Offering, exercisable in whole or in part at any time up to 48 hours prior to the closing of the Offering. All references herein to “$” are to Canadian dollars.

Current insiders of the Company are expected to subscribe for up to 92,000,000 Common Shares at the Issue Price for gross proceeds of up to $9,200,000.

The net proceeds of the Offering will be primarily used for mine development, general corporate and working capital purposes.

The closing of the Offering is expected to occur on or about October 26, 2016, and is subject to receipt of all necessary regulatory approvals, including approval of the TSX Venture Exchange (the “TSXV“). All securities issued pursuant to the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws.

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

About Corsa Coal

Corsa is one of the leading suppliers of premium quality metallurgical coal, an essential ingredient in the production of steel, which is necessary for the secular trends in global utilization. Our core business is supplying metallurgical coal with the highest safety, yield, and strength characteristics to domestic steel producers while being a strategic source of supply in the Atlantic and Pacific basin markets. Corsa also offers high heat content, low delivered cost coal to major utilities and industrial users in the Southeast region of the U.S.

In-house financial industry veterans at Prospectus LLC provide bespoke, institutional-quality financial prospectus and securities offering document creation services in accordance with all local regulatory regimes and respective accredited investors’ requirements. We maintain a local presence in major cities throughout the globe, including New York, London, Hong Kong, Singapore and Shanghai. Our senior associates work with entrepreneurs and corporate executives domiciled in each of the EU countries, as well as companies based in Eastern Europe, PacRim, Middle East, LatAm and emerging companies throughout Africa.

Prospectus LLC practice areas include preparation of Issuers’ preliminary prospectus (“red herring’), final prospectus, a full range of private placement offering prospectus, offering memorandum, offering circulars, explanatory memorandums and related private placement documents.

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Corsa Coal Upsizes Private Offering Common Shares

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