NEWS RELEASEXSTRATA COAL TO ACQUIRE FIRST COAL CORPORATION
Sydney, 28 July 2011
Xstrata Coal has made an all-cash proposal to acquire 100% of First Coal Corporation ("First Coal") shares, options and warrants for CDN$1.75 per share. The offer values First Coal, a privately-owned Canadian company, at approximately CDN$147 million (US$153 million).
First Coals Board has unanimously recommended that its shareholders support the transaction, following receipt by the Board of a fairness opinion from its financial advisor. Many of First Coal's largest shareholders have entered into lock-up agreements with Xstrata Coal which represent more than 50% of First Coal's common shares (on a fully-diluted basis).
The proposed purchase of First Coal provides Xstrata Coal with access to coking coal exploration leases in British Columbia, Canada.
The acquisition is to be completed by concurrent statutory plan of arrangement and takeover bid, and is subject to customary conditions including the arrangement being approved by at least two-thirds of the votes cast at a First Coal shareholders meeting to be held on August 2,
Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcementXstrata contactsXstrata Coal
Telephone +61 2 9253 6789 Telephone +44 20 7968 2838
Mobile +61 419 731371 Mobile +44 7769 314374
Email email@example.com Email firstname.lastname@example.orgFirst Coal Corporation
First Coal is a privately-owned Canadian resource company exploring and developing metallurgical coal properties in north-eastern British Columbia, Canada. First Coal holds licenses or applications for licenses in respect of approximately 94,000 hectares in the Peace River Coalfield.
Further information concerning First Coal is available at www.firstcoal.com.Xstrata Coal
Xstrata Coal is the world's largest international exporter of thermal coal and a significant producer of premium quality hard coking coal and semi-soft coal. Headquartered in Sydney, Australia, Xstrata Coal has interests in over 30 operating coal mines in Australia, South Africa and Colombia and the Donkin project in Nova Scotia, Canada.
Further information concerning Xstrata Coal is available at www.xstratacoal.com.