Royal Coal Corp. (CVE:RDA) announced that it has exercised its right to issue additional notes pursuant to the terms of a note purchase agreement dated September 30, 2009 among the Company, Juno Special Situations Corporation, as agent and the noteholders from time to time party thereto.
The press release is quoted as saying:
The proceeds of the note issuance will be used to fund its ongoing coal mining operations. Funding is expected to occur on or about September 10, 2010. As previously disclosed, Juno received all amounts loaned to the Company pursuant to the Purchase Agreement from an unrelated lender for the sole purpose of re-lending the funds to the Company on the same terms provided by the third party lender.