December 03, 2008

Western Canadian suggested to buy Falls Mountain

Western Canadian Coal Corp announced that an independent proxy advisory services firm has recommended company shareholders to vote in favor of the approval of the Falls Mountain Coal Inc acquisition and the amendment to the conversion rate in the related party loan made to the company by its largest shareholder, Cambrian Mining PLC, at the special meeting of shareholders to be held on March 31st 2008.

Last month, Western Canadian Coal said it had entered a definitive deal with Cambrian Mining to buy Falls Mountain Coal and added it sees capital cost savings of about CAD 70 million in developing the company's Brule mine to its full capacity.

Western Canadian Coal on September 18 said that major shareholder Cambrian Mining had agreed to give a short term loan facility of CAD 5 million to the company.