No, the Koreans! See asx announcement;PROPOSED ISSUE OF 40...

No, the Koreans! See asx announcement;

PROPOSED ISSUE OF 40 MILLION SHARES FOR $16.8 MILLION
• $16.8 million placement to be made to Korean power utility Kepco and EWP, subject
to final approvals
• Adds a power utility and substantial thermal coal consumer to Cokatoo’s
impressive list of strategic shareholders and partners
• New capital to be used to expand Cokatoo’s coal project portfolio and exploration
and development programs
The Directors are pleased to announce that Cokatoo Coal Limited (‘Cokatoo’ or ‘the Company’)
has entered heads of agreement with Korea Electric Power Corporation ('Kepco') and Korea East-
West Power Company Limited ('EWP') to allot 40 million fully paid ordinary shares, being 20 million
shares to each of Kepco and EWP, at an issue price of $0.42 per share for consideration totalling
of $16.8 million.
These allotments, which are to be completed by 31 December 2007, are subject to the following
conditions precedent:
• no objection by the Treasurer of the Commonwealth Government under the Foreign
Acquisitions and Takeovers Act;
• Cokatoo shareholder approval of a resolution which is being put the shareholders at the
Company's forthcoming Annual General Meeting accordance with ASX Listing Rule 7; and
• ratification of the transaction by the Boards of Directors of Kepco and EWP.
The shares to be allotted will be subject to a voluntary escrow restriction for a period of 12 months
from the date of allotment.
In addition, the Company has granted Kepco and EWP the first right of refusal to purchase the
greater of 2.0 million tonnes or that percentage of Cokatoo's thermal coal production equal to the
percentage ownership of Cokatoo by KEPCO and EWP per annum produced from any of
Cokatoo’s coal mining operations. The purchase of any coal by EWP from Cokatoo will be at the
then market price for the relevant type of coal and otherwise on terms and conditions reasonably
required by EWP having regard to terms and conditions applicable in the Australian coal market at
the time of sale.
Kepco is the Korean government power transmission and distribution utility, and currently
generates approximately 90% of all of Korea's power. Kepco's current total installed power
generation capacity is approximately 60,000 megawatts.
Kepco has five wholly owned thermal power generating subsidiary companies and one wholly
owned hydro and nuclear power generating subsidiary company. EWP is one of these wholly
owned thermal power generating companies with current installed power generation capacity of
approximately 9,500 megawatts. EWP currently consumes in excess of 11.5 million tonnes of
bituminous and sub-bituminous coal per annum and this is forecast to rise to over 18.5 million
tonnes by 2016.
This transaction:
• adds a power utility and substantial thermal coal consumer to the Company's already
impressive list of strategic shareholders and partners;
• further strengthens the Company's capital base to enable it to continue to expand its coal
project portfolio;
• supports the continued exploration and development of the Company's existing projects;
and
• further enhances the Company's excellent access to the important Korean market if and
when its projects come into production.