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Universal Coal Expands Board

Universal Coal (ASX: UNV) has approved the appointment of two new non-executive directors to the board in line with its recent Private Placement Agreement with Coal Development Holding B.V.

One of the key terms of the placement, which was undertaken in early December, was that CDH had the right to nominate two non-executive directors to be appointed to Universal's Board.

Following shareholder approval of the transaction at the company's Annual General meeting on 21 December 2012, David Twist and Carlo Baravalle have been appointed to the Board.

Universal closed the A$13.6 million placement to Coal Development Holding B.V., a wholly owned investment vehicle of the African Minerals Exploration & Development Fund, at a 45% premium to the last traded share price at the end of December.

CDH subscribed to 29.99% of the issued capital in Universal at $0.141568 per CDI (share).

By securing A$13.6 million at a 45% premium, Universal Coal will now be able to fully fund the flagship Kangala thermal coal project, which is slated to go into production in 2013.

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