Canada’s Lysander buys Verticalna anthracite mine in Luhansk

Canada’s Lysander Minerals Corporation announced yesterday that on November 26 it completed the acquisition of the Verticalna anthracite mine in Luhansk region via the acquisition of Skhidna Vugilna Kompania (East Coal) in a two-stage transaction process. Lysander acquired all of Ukraine Energy Ltd, the owner of a 51% interest in East Coal, from Ukraine Coal Plc of the United Kingdom and it acquired the remaining 49% interest in East Coal from Surrey Dynamics Limited, also of the United Kingdom. As consideration, Lysander is issuing 22 million common shares to Ukraine Coal Plc and 5 million common shares and a USD 3 mln three-year convertible debenture to Surrey Dynamics. Ukraine Coal Plc retains a royalty interest of USD 1 per mt on coal sales that will commence when commercial production has been achieved. The Verticalna anthracite mine is currently not being exploited.