Universal Coal has provided the market with further details of the AUD 12 million funding agreement with Susquehanna International Group LLP announced earlier this week.

In addition to the agreement for the issue of converting notes, Universal has also executed an agreement with Susquehanna subsidiary Susquehanna Pacific for the issue of unlisted options over unissued Chess Depositary Interests.

This is expected to raise about AUD 8 million in addition to the funds raised under the issue of converting notes to Susquehanna International Group.

The maximum number of unlisted options that may be issued is about 38.5 million, exercisable at a minimum of 12.5% and a maximum of 17.5% to the closing price of Universal's CDIs at the drawdown date for the first tranche of converting notes.

The closing price will be a minimum of AUD 0.2336 per CDI and a maximum of AUD 0.25 per CDI, which is a premium to the current price of Universal's CDIs as at the close of trade on April 11th 2012. The options expire five years from the drawdown date for the first tranche of converting notes.

Under the agreement with Susquehanna, Universal is able to draw down AUD 7 million of the convertible note facility in May 2012.

The funding will be used to advance phase two drilling at the Berenice Cygnus coking coal project, along with finalizing engineering work on the Kangala thermal project.

Source - Universal Coal

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