Corsa Coal (TSXV: CSO), which has U.S. coal mines and a Canadian listing, announced June 2 that it has closed its previously announced private placement of 63,000,000 common shares of the company, with 56,000,000 closed on a brokered basis and 7,000,000 closed on a non-brokered basis, for gross proceeds of C$3.15 million.
Paradigm Capital Inc. acted as lead agent for the brokered portion of the private placement. The company paid the agent aggregate cash commissions of C$168,000 and issued a total of 3,360,000 compensation warrants in connection with the private placement. Each compensation warrant entitles the agent to purchase one common share at C$0.05, exercisable for a period of 24 months.
The proceeds of the private placement are being used to fund working capital and for general corporate purposes. The placement was originally announced on April 18, 2016.
The TSX Venture Exchange has granted conditional approval of the listing of the common shares issued under the private placement subject to final acceptance.
The company’s coal operations are conducted through the Northern Appalachia Division (NAPP) and the Central Appalachia Division (CAPP). NAPP is based in Somerset, Pennsylvania, and is primarily focused on metallurgical coal production in the states of Pennsylvania and Maryland. Corsa markets and sells its NAPP coal to customers in North America, Europe, South America and Asia. CAPP is based in Knoxville, Tennessee, and is focused on thermal and industrial coal production in the Central Appalachia coal region and sales in the southeastern region of the United States.