Corsa Capital Ltd. completes C$34.6 million acquisition of Wilson Creek Energy, LLC

Date Closed: 12/08/2010

Value: C$34.6 million

On December 8, 2010, Corsa Capital Ltd. (Corsa), completed the acquisition of 100% of Wilson Creek Energy, LLC (Wilson Creek) for an aggregate purchase price of US $10,943,408 and the issuance of 52,570,204 common shares in the capital of Corsa. Through its acquisition of Wilson Creek, Corsa indirectly operates metallurgical coal mining and processing facilities primarily located in Somerset County Pennsylvania.

In connection with the completion of the acquisition of Wilson Creek and in accordance with the terms of the subscription receipt trust indenture (Subscription Receipt Indenture), the aggregate gross proceeds of $69,443,910 from the private placement of 154,319,800 subscription receipts that was completed on September 30, 2010 were released from escrow and delivered to Corsa. At the same time, each subscription receipt was converted into one common share in the capital of Corsa. The proceeds of the private placement were used by Corsa to repay a US $5 million bridge loan and to indirectly fund the cash portion of the purchase price of the acquisition of Wilson Creek, to fund the construction costs of Wilson Creek's coal cleaning plant, to fund the purchase price of additional coal properties in which Wilson Creek has an interest and for general working capital purposes.

Corsa was represented in Canada by BLG, with a team led by Philippe Tardif and assisted by Larissa Tkachenko, Dolores Di Felice, Paul Simon, Angela Lin, Tal Cyngiser and Krstin​a Skocic.