Cobalt Coal Ltd.- Unit Offering
CALGARY, ALBERTA -- (Marketwire) -- 02/11/13 -- Cobalt Coal Ltd.
("Cobalt" or the "Corporation") (TSX VENTURE:CCF) is pleased to
announce that it intends to complete a private placement of up to
$7,000,000 of units (the "Units") at a price of $1,000 per Unit (the
"Offering"). Each Unit will be comprised of $1,000 principal amount
of secured redeemable debentures (the "Debentures"), which will
mature thirty-six months from the date of issuance and 4,000 common
shares in the capital of the Corporation. The Debentures will bear
interest at a rate of 10% per annum payable quarterly from the date
The Debentures will be secured by a charge to be registered on all of
the mining equipment to be acquired from time to time with the
proceeds of the Offering.
Cobalt may engage finders or agents to act as agents of Cobalt in
connection with the Offering, and in connection therewith may pay the
finders and agents a cash commission of up to 8% of the proceeds of
the Offering that result from such parties efforts, subject to
compliance with applicable securities laws. The agents may also be
granted broker warrants to purchase up to 8% of the number of Units
sold under the Offering, with each Broker Warrant entitling the
holder to purchase one Unit at $1,000 per Unit for a period of 18
months from the closing of the Offering.
The net proceeds made available through the sale of the Units will be
-- to complete mine face up work on the Mill Creek tract; and
-- to acquire mining equipment
to commence production from the first of the 5 tracts that comprise
the newly acquired Virginia properties ("Virginia Properties"), that
being the Mill Creek tract which is already permitted for production
and the construction of a wash plant; and
-- to drill 5 evaluation holes on the Virginia Properties; and
-- for general working capital purposes.
The Offering is subject to the approval of the TSX Venture Exchange.
Pursuant to applicable securities laws, all securities issued
pursuant to the Offering will be subject to a hold period of four
months following the closing of the Offering.
In addition to the Offering described herein, management of Cobalt is
engaged in discussions with various parties with a view to
negotiating a joint venture arrangement for the recently acquired
Virginia properties. In the event that such discussions are
successful, additional capital may be made available to Cobalt to
accelerate development on the Virginia properties in exchange for a
participating interest in a joint venture to be established regarding
the Virginia properties.
Cobalt is a publicly traded coal acquisition and production company
headquartered in Calgary, Alberta, Canada with a regional office
Virginia, USA. Cobalt was created to capitalize on opportunities in
the metallurgical coal mining industry.
The securities of Cobalt being offered have not been, nor will be,
registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold within the United States or
to, or for the account or benefit of, U.S. persons absent U.S.
registration or an applicable exemption from U.S. registration
requirements. This release does not constitute an offer for sale of
securities in the United States.
Statements in this news release may contain forward-looking
information including the use of proceeds from the Offering, the
closing of the Offering and ongoing joint venture discussions. The
reader is cautioned that assumptions used in the preparation of such
information may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted, a
result of numerous known and unknown risks, uncertainties, and other
factors, many of which are beyond the control of the Corporation.
These risks include, but are not limited to, the risks associated
with the coal mining industry, commodity prices and exchange rate
changes. Industry related risks could include, but are not limited
to, operational risks in exploration, development and production,
delays or changes in plans, risks associated to the uncertainty of
reserve estimates, health and safety risks and the uncertainty of
estimates and projections of production, costs and expenses. The
reader is cautioned not to place undue reliance on these
Neither TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Cobalt Coal Ltd.
Office: (403) 607-4009
Cobalt Coal Ltd.
Office: (403) 538-8455
Cobalt Coal Ltd.
President & CEO
Office: (423) 323-2396
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