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Trowers & Hamlins acts for Cambrian Mining on US$36 million loan

Trowers & Hamlins acts for Cambrian Mining on US$36 million loan

City law firm, Trowers & Hamlins, is acting for longstanding AIM traded client Cambrian Mining plc which has announced a loan facility of up to US$36 million from Western Canadian Coal Corp.

The proceeds of the loan were used to repay in full the Cambrian Group's revolving credit and term loan facility with Investec Bank (UK) Limited.

Trowers & Hamlins is also acting for Cambrian Mining in connection with its previously announced proposed merger with Western Canadian Coal Corp. Agreement in principal in respect of certain key terms has been reached between the parties whereby Western Canadian may acquire the whole of the issued and to be issued ordinary share capital of Cambrian Mining by way of a scheme of arrangement or takeover offer. Under the proposal holders of Cambrian Mining shares will receive 0.75 common shares in Western Canadian for every one Cambrian Mining share held.
The proposal values the entire ordinary share capital of Cambrian Mining at approximately £29 million based on the closing price of one Western Canadian share on 23 December 2008.

Corporate partner, Richard Hildebrand commented:

"Trowers & Hamlins is delighted to be acting for this longstanding client Cambrian Mining in this important stage of its development as its seeks to forge a closer alliance with its investee company Western Canadian Coal. We look forward to a successful conclusion to the merger discussions".