Cobalt Coal Ltd. Announces Proposed Asset AcquisitCobalt Coal Ltd.
TSX VENTURE : CCF
February 29, 2012 09:00 ET
Cobalt Coal Ltd. Announces Proposed Asset Acquisitions
CALGARY, ALBERTA--(Marketwire - Feb. 29, 2012) - Cobalt Coal Ltd. (formerly Cobalt Coal Corp.) (TSX VENTURE:CCF) ("Cobalt" or the "Corporation") is pleased to announce that it has entered into letters of intent with two private vendors involving the acquisition, directly or indirectly, of mineral rights on two separate properties potentially containing significant quantities of metallurgical and specialty coals. One of the properties is located in Dickenson County, Virginia (the "Virginia Acquisition") and the other is located in Bell and Knox Counties, Kentucky (the "Kentucky Acquisition").
In the case of the each property, samples from the seams of interest have been analysed which support the composition of the coal being premium quality low to mid volume metallurgical and specialty grade coals.
Pursuant to the Kentucky Acquisition, it is proposed Cobalt will acquire the properties for consideration of US$1,593,000 payable as to US$905,500 in cash and US$687,500 by the issuance of common shares of Cobalt based on the 20 day weighted average trading price of Cobalt's common shares on the TSX Venture Exchange Inc. prior to the scheduled closing date of June 25, 2012.
Pursuant to the Virginia Acquisition, it is proposed Cobalt will purchase the properties for a purchase price of US$1,000,000 payable in cash on the scheduled closing date of April 30, 2012.
Cobalt has placed deposits for each of the proposed two acquisitions each in the amount of $200,000. Funds for the placement of these deposits came from the recently completed private placement of Convertible Debentures of the Corporation as announced on February 24, 2012.
Cobalt has entered into these acquisition agreements in furtherance of its corporate objectives of adding reserves of metallurgical grade coal and placing them into production. In that regard, Cobalt intends to commission NI 43-101 compliant reports with respect to the properties to be completed in advance of formal closing of the acquisitions.
Closing of the acquisitions remain subject to the approval of the TSX Venture Exchange Inc., completion of due diligence and other usual closing conditions for transactions of this nature.