StockMarketWire.com - EastCoal and its wholly-owned Cyprus incorporated subsidiary, Gramsico Holdings have agreed to sell East Coal Company and Ukraine Energy to Austrian-based EFI Holding for US$499,000 and US$1,000 respectively.

EastCoal held 0.1% of ECC and UE while Gramsico held the remaining 99.9% of both companies.

ECC and UE are Ukranian incorporated companies that are indirectly wholly-owned by the EastCoal through Gramsico. ECC holds the assets relating to the EastCoal's material project, the Verticalnaya mine. UE is an inactive shell company.

The share purchase agreements with EFI also provide for a royalty interest to be earned by the EastCoal equal to US$1.00 per tonne of coal produced at the Verticalnaya mine, and provide for the assignment to EFI of EastCoal's rights under a loan agreement between the EastCoal and ECC.

EastCoal and Gramsico have also agreed to sell Inter-Invest Coal LLC to Cyprus-based company,- Strong Group Corporation for US$15,020.

EastCoal and Gramsico held 0.1% and 99..9% respectively of IIC which is currently in a liquidation process in Ukraine.

IIC holds the assets relating to EastCoal's Menzhinsky mine.

The share purchase agreements also provide for the assignment to Strong Group of the issuer's rights under various loan agreements between EastCoal and IIC.



At 1:09pm: [LON:ECX] Eastcoal share price was +0.01p at 0.88p



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