10/21/2013 06:45 EDT | Updated 12/21/2013 05:12 EST

EastCoal unable to arrange financing; suspends mining operation, stock trading

VANCOUVER - EastCoal Inc. (TSXV:ECX) is idling its new Ukrainian mine for lack of financing and requesting that the TSX Venture Exchange and the London Stock Exchange's AIM suspend trading of its shares.

EastCoal closed Friday at 8.5 cents on the TSX Venture Exchange, giving the Vancouver-based junior miner a market value of about $6.1 million.

Two years ago, EastCoal shares were worth more than $5 each but have traded no higher than $2.90 in the past year.

EastCoal announced Monday, before markets opened, that it has been unable to arrange future financing for its operations and is putting its Verticalnaya mining operation in Ukraine under care and maintenance.

The company announced earlier this month that the Verticalnaya North Mine had reached a production rate of 3,000 tonnes per month and had completed its first coal sales.

However, it also said continued operations depended on EastCoal's ability to raise additional funding and that its board was looking at a number of alternatives.

It announced early Monday, before North American markets opened, that the board had been "unable to conclude any arrangements to date."