Western Canadian Coal (TSX, AIM:WTN) is selling up to 19.2 million units in a private placement worth roughly $40 million.
Proceeds of the financing will be used to repay about $19.6 million of debt from its Wolverine project, for general corporate purposes and working capital.
GMP Securities Ltd. and Cenkos Securities Ltd. will lead the offering, which is expected to close on June 28. One of Western Canadian Coal's largest shareholders, Cambrian Mining plc, has agreed to subscribe for up to $10 million of the private placement. Cambrian currently holds about 47.3% of Western Canadian Coal shares.
Western Canadian's share price range during the past week: between $2.47 and $2.68; 52-week high: $3.11; 52-week low: $1.65.