CAT/Osilinka Option Terminated
Lysander is now focused on energy and is commencing development of its large Verticalnaya Mine anthracite coal project in Ukraine. Accordingly, it will seek a suitable partner to continue exploration at the CAT/Osilinka project. Lysander considers the property to have potential. It is situated in an area that is attracting considerable attention.
On behalf of the Board,
Bryce M.A. Porter
President and CEO
About Lysander
Lysander is now focused on energy. In 2008, it negotiated initial options to acquire the Verticalnaya anthracite coal project in the Donbass Coal Basin of Ukraine. The acquisition was completed at the end of November 2009.
Lysander plans to initiate construction work later in 2010. It is currently conducting pumping and care and maintenance operations including an initial improvement program.
In September 2008, a NI 43-101 technical report on the Verticalnaya mine was prepared on behalf of Lysander and is available on SEDAR (www.sedar.com) and the Company's website. A technical report on a possible satellite operation north of Verticalnaya mine is currently in preparation.
The Verticalnaya coal mine is situated in the Lugansk region of Ukraine. The mine previously produced anthracite, a high quality, premium priced coal. It was placed on care and maintenance after a period of low production following the break-down of the Soviet Union.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.
Ukraine Registration Process Complete
The Verticalnaya mine has been on care and maintenance. It has management and an initial work force. Lysander will now press ahead with preparatory work in advance of construction and reactivation activities which are planned to commence in the first half of 2010.
The acquisition was approved by shareholders on September 30, 2009 and final approval of the TSX-V was granted on December 4, 2009.
On behalf of the Board,
Bryce M.A. Porter
President and CEO
About Lysander
The Company's strategy is to seek advanced resource projects with potential for exceptional returns, without geographical limitations. It has focused on coal commencing with the Verticalnaya anthracite coal project in the Donbass Coal Basin of Ukraine.
A NI 43-101 technical report on the Verticalnaya mine is available on SEDAR (www.sedar.com) and the Company's website. Reserves and resources were as under-noted:
| Proven reserves | 16,200,000 tonnes |
| Probable reserves | 11,000,000 tonnes |
| Measured resources | 57,300,000 tonnes |
| Indicated resources | 18,900,000 tonnes |
| Total resources | 76,200,000 tonnes |
The Company is also investigating a possible satellite operation north of Verticalnaya mine.
Please visit our website at www.lysanderminerals.com for further information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.
Ukraine Coal PLC Shareholdings
Ukraine Coal Plc ("Ukraine Coal") of 55/56 St. James's Street, London, United Kingdom, has received 22,000,000 common shares of Lysander Minerals Corporation (TSX-V: LYM) ("Lysander") in exchange for its 100% interest in Ukraine Energy Limited ("UEL") of Ukraine. UEL has a 51% interest in Skhidna Vugilna Kompania ("East Coal") which owns the Verticalnaya anthracite mine in Ukraine. A royalty of US$1 per tonne sold will be payable by UEL to Ukraine Coal from its share of future distributions of profit by East Coal.
Ukraine Coal owns 22,000,000 common shares of Lysander, representing approximately 31.4% of the issued and outstanding shares of the company. The common shares are held in escrow pursuant to the terms of an escrow agreement dated November 26, 2009, per TSX Venture Exchange Policy 5.4. Under the terms of the escrow agreement, the common shares will be released according to a schedule over a period of 36 months.
On behalf of the Board,
Bryce M.A. Porter
President and CEO
Please visit our website at www.lysanderminerals.com for further information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.
Lysander Completes Ukraine Acquisition
The Company acquired control of all of the charter capital of Skhidna Vugilna Kompania ("East Coal"), the owner of the mine by two transactions: it acquired all of Ukraine Energy Ltd, the owner of a 51% interest in East Coal, from Ukraine Coal Plc of the United Kingdom and it acquired the remaining 49% interest in East Coal from Surrey Dynamics Limited, also of the United Kingdom. As consideration, the Company is issuing 22 million common shares to Ukraine Coal Plc and 5 million common shares and a US$3 million 3 year convertible debenture to Surrey Dynamics Limited. Ukraine Coal Plc retains a royalty interest of US$1 per tonne on coal sales that will commence when commercial production has been achieved.
The acquisition was approved by shareholders on September 30, 2009 and conditional approval of the TSX-V was granted on September 9, 2009.
On behalf of the Board,
Bryce M.A. Porter
President and CEO
About Lysander
The Company's strategy is to seek advanced resource projects with potential for exceptional returns, without geographical limitations. It has focused on energy, commencing with options to acquire the Verticalnaya anthracite coal project in the Donbass Coal Basin of Ukraine.
In September 2008, a NI 43-101 technical report on the Verticalnaya mine was prepared on behalf of Lysander and is available on SEDAR (www.sedar.com) and the Company's website. A technical report on a possible satellite operation north of Verticalnaya mine is currently in preparation.
The Verticalnaya coal mine is situated in the Lugansk region of Ukraine. The mine previously produced anthracite, a high quality, premium priced coal. It is presently on care and maintenance after a period of low production following the break-down of the Soviet Union.
Please visit our website at www.lysanderminerals.com for further information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.
Option Amendments And Exercises- Ukraine Acquisition
The Company is also pleased to announce that, as approved by shareholders on September 30, 2009 and subject to final regulatory and TSX Venture Exchange approvals, it has initiated the exercise of its option (the "UEL Option") to acquire all of Ukraine Energy Limited, which holds a 51% interest in East Coal. It has also initiated exercise of its option to acquire the remaining 49% interest (the "Minority Option") in East Coal from Surrey Dynamics Limited ("Surrey Dynamics") of the United Kingdom.
Regulatory and registration processes required for the option exercises are proceeding.
The amendments extend the option agreements to November 30, 2009. Surrey Dynamics acknowledges that it will have no right of representation on the Company's Board of Directors. No additional director will now be appointed as a consequence of the option exercises.
On closing of the UEL Option, the Company will issue 22,000,000 common shares to Ukraine Coal Plc of the United Kingdom.
On closing of the Minority Option, the Company will issue 5,000,000 common shares and an unsecured three year, convertible US$3,000,000 debenture, bearing interest at 2% over Libor. The debenture may be converted by the holder into 8,000,000 common shares of the Company at any time. Surrey Dynamics has requested terms in addition to the agreed terms for the convertible debenture, which request is expected to be resolved shortly.
The Company intends to develop and re-open the Verticalnaya mine to high modern standards. There are considerable assets and infrastructure; mine management and an initial work force are in place; and mine planning, permits and licenses are substantially complete.
A NI 43-101 technical report completed in September 2008 projects that production should increase in stages, as long walls are developed, to exceed 3 million tonnes of saleable anthracite per year. Average operating cost was projected to be US$31/tonne and the net present value, discounted at 12%, was projected to be US$352 million. The report is available at www.sedar.com and the Company's website at www.lysanderminerals.com.
On behalf of the Board,
Bryce M.A. Porter
President and CEO
About Lysander
Since the spin-out of its Lorraine-Jajay copper-gold project to Lorraine Copper Corp. (TSX-V: LLC) in April 2008, Lysander's declared strategy is to seek advanced resource projects with potential for exceptional returns, without geographical limitations. It has focused on energy, commencing with options to acquire the Verticalnaya anthracite coal project in the Donbass Coal Basin of Ukraine.
In September 2008, a NI 43-101 technical report on the Verticalnaya mine was prepared on behalf of Lysander and is available on SEDAR (www.sedar.com) and the Company's website. A technical report on a possible satellite operation north of Verticalnaya mine is currently in preparation.
The Verticalnaya coal mine is situated in the Lugansk region of Ukraine. The mine previously produced anthracite, a high quality, premium priced coal. It is on care and maintenance after a period of low production following the break-down of the Soviet Union.
Please visit our website at www.lysanderminerals.com for further information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.