Lotta Coal Signs Initial Financing Agreement Worth $8 Million To Accelerate Its Drilling Program
Lotta Coal Inc. (PINKSHEETS: LCOL) today announced it has signed an initial financing agreement with a private investment group for USD $8,000,000 to accelerate its drilling program and completion and tie in of its 8 shallow gas wells in the Boyer area.
According to the terms of the binding agreement, the investment group will invest an initial USD $8,000,000 and will be granted a series of Warrants to be exercised over a 60 month period. The initial investment along with the exercising of the Warrants could, if fully subscribed, bring USD $189,040,000 into the company. The investment is subject to the completion of the due-diligence and is scheduled to close on or before June 28, 2007.
“We are extremely satisfied with the advantageous terms and conditions of the financing, which are highly favorable to our existing shareholders,” said Dr. Nicolas Matossian, Chairman of Lotta Coal Inc. Dr. Matossian further added that “the initial investment will enable us to tie our existing 8 proven gas wells into the pipeline, and immediately drill an additional 8 wells. A program of a further 156 wells is planned to start this winter. These wells will generate significant cash-flow and profit for our shareholders and create sustainable value for many years to come.”
Currently Lotta Coal Inc. has over 100,000 acres of land, which are all located in prime oil and gas producing areas of Alberta, and the company plans to further develop its existing properties as well as continue to acquire probable and producing properties where they meet its investment criteria.
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