Canada-listed Cobalt Coal Ltd. (formerly Cobalt Coal Corp.) (TSXV:CCF) announced Feb. 29 that it has entered into letters of intent with two private vendors involving the acquisition, directly or indirectly, of mineral rights on two properties that may contain significant quantities of metallurgical and specialty coals.
One of the properties is located in Dickenson County, Va., and the other is in Bell and Knox counties, Ky. In the case of the each property, samples from the seams of interest have been analyzed and show this is premium low- to mid-vol met and specialty coals, Cobalt said.
Under the Kentucky acquisition, Cobalt would acquire the properties for US$1,593,000, payable as US$905,500 in cash and US$687,500 through 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 prior to the scheduled closing date of June 25.
Under the Virginia acquisition, Cobalt would purchase the properties for US$1m, payable in cash on the scheduled closing date of April 30.
Closing of the acquisitions remain subject to the approval of the TSX Venture Exchange, completion of due diligence and other usual closing conditions for transactions of this nature.
Cobalt is a coal exploration and production company headquartered in Calgary, Canada, with a regional office in Welch, W.Va. Its small deep mine in McDowell County, W.Va., was made famous in 2011 in a Spike TV reality series called “Coal.”