Mr. Mike Crowder reports
COBALT COAL LTD. PROVIDES RESTRUCTURING UPDATE
Cobalt Coal Ltd. has received conditional approval from the TSX Venture Exchange for the restructuring transactions described in Cobalt's July 22, 2011, press release.
Cobalt is also pleased to report that over 90 per cent of the holders of units in Westchester Coal LP have accepted the offer made to them by the company. Upon closing of the acquisition of the units, Cobalt intends to acquire 100 per cent of the units of the partnership using the squeeze-out provisions contained in the limited partnership agreement governing the partnership meaning that the partnership will become a wholly owned subsidiary of the company. Cobalt will issue a total of 1,718,640 common shares to holders of units as consideration for the acquisition of their units.
Cobalt has continued to produce coal during this restructuring phase of the company with coal sales volumes continuing to improve such that a total of 3,725 clean tons were sold during June, 2011. Management of Cobalt remains confident that material improvements in sales volumes will occur after infrastructure upgrades are completed and additional mining equipment is secured -- to be accomplished with the proceeds of the equity financings to occur in conjunction with the restructuring, as previously announced.
We seek Safe Harbor.