16th Nov 2006 08:57
Cambrian Mining PLC16 November 2006 CAMBRIAN MINING PLC ("Cambrian" or "the Company") The Directors of Cambrian would like to refer shareholders to the press releasetoday from Western Canadian Coal Corp ("WCCC") announcing the execution of anagreement with Anglo Coal Canada Inc., an affiliate of Anglo American Plc, NEMINorthern Energy & Mining Inc. and Hillsborough Resources Limited. Cambriancurrently holds 43% of the issued capital of Western Canadian Coal Corp. The full announcement is set out below. For further information on Cambrian, please contact: Cambrian Mining John Byrne / Mark Burridge +44 (0)20 7409 0890 Parkgreen Communications Cathy Malins / Annabel Leather +44 (0)20 7493 3713 Western Canadian Coal, NEMI, Anglo Coal and Hillsborough Reach an Agreement Vancouver, BC November 15, 2006 - Western Canadian Coal Corp. (TSX: WTN & WTN.DBand AIM: WTN) ("WCCC" or the "Company") is pleased to announce the execution ofan agreement with Anglo Coal Canada Inc. ("Anglo"), an affiliate of AngloAmerican plc, NEMI Northern Energy & Mining Inc. ("NEMI") and HillsboroughResources Limited ("HLB") (the "Parties"). The agreement is subject to Anglo, HLB and NEMI closing the transaction betweenthem (as announced by HLB and NEMI in mid-October 2006), which transactionincludes the formation of a new entity by the Parties ("Newco"). The agreementsets the platform for advancing the current Belcourt Saxon work program andfunding, while at the same time provides WCCC's consent to the transfer ofNEMI's interest in the Belcourt Saxon Limited Partnership to Newco. The agreement also provides a mechanism whereby the break fee issue arising fromthe previously proposed combination of WCCC and NEMI will be resolved quickly byreference to an independent expert rather than the courts. In addition, the agreement also provides that WCCC and the Parties willendeavour to develop a definitive agreement based on their understanding oncertain non-binding indicative terms. These terms include: • a proposal for a grant of a 12-month option to WCCC providing the right to acquire all or some part(s) of certain Newco coal properties in exchange for cash or other agreed consideration; • good faith discussions towards the sale to WCCC of 0.8 million tonnes per annum run-of-mine coal sourced from Newco operations for processing through WCCC's Wolverine coal plant; and • the examination of the potential for a coal association for the northeast region and potential coal processing opportunities in the region. The agreement has the support of Cambrian Mining plc, WCCC's major shareholderand Coal International plc, NEMI's major shareholder. Commenting on the transaction, Gary Livingstone, CEO of Western Canadian Coal,said: "This agreement provides the framework for working together with Anglo tosecure additional coal production for Western Canadian Coal upon commercialterms and working together on areas of mutual interest in the region. We seeAnglo Coal's entry in the region as an important step in advancing NortheastBritish Columbia's presence in international coal markets." Forward-Looking Information This release may contain forward-looking statements that may involve risks anduncertainties. Such statements relate to the Company's expectations,intentions, plans and beliefs. As a result, actual future events or resultscould differ materially from those suggested by the forward-looking statements.Readers are referred to the documents filed by the Company on SEDAR. Such riskfactors include, but are not limited to changes in commodity prices; strengthsof various economies; the effects of competition and pricing pressures; theoversupply of, or lack of demand for, the Company's products; currency andinterest rate fluctuations; the Company's ability to secure long term coal salecontracts for its products and the Company's ability to produce and supply coalthat meets contract specifications and customers' expectations; various eventswhich could disrupt the Company's construction schedule or operations; theCompany's ability to obtain additional funding on favourable terms, if needed;and the Company's ability to anticipate and manage the foregoing factors andrisks. Additionally, statements related to the quantity or magnitude of coaldeposits are deemed to be forward-looking statements. The reliability of suchinformation is affected by, among other things, uncertainties involving geologyof coal deposits; uncertainties of estimates of their size or composition;uncertainties of projections related to costs of production; the possibilitiesin delays in mining activities; changes in plans with respect to exploration,development projects or capital expenditures; and various other risks includingthose related to health, safety and environmental matters. WESTERN CANADIAN COAL CORP. "Gary K. Livingstone" President and Chief Executive Officer For further information please contact: Gary K. Livingstone, President & CEO or Fausto Taddei, CFO & Corporate Secretary, Western Canadian Coal Corp., 900 - 580 Hornby Street, Vancouver, B.C. V6C 3B6 CANADA Phone 604-608-2692 Fax 604-629-0075 Email: [email protected], website: www.westerncoal.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Anglo American