Industrial Metals

Colonial Coal International (TSXV:CAD) recently entered into a letter agreement with an investor group regarding terms and conditions for the investor group to complete a private placement. Upon completion of the private placement, the investor group will have the option to acquire a 10 percent interest in Colonial’s flatbed property.

Colonial Coal International (TSXV:CAD) recently entered into a letter agreement with an investor group regarding terms and conditions for the investor group to complete a private placement. Upon completion of the private placement, the investor group will have the option to acquire a 10 percent interest in Colonial’s flatbed property.
As quoted in the press release:

In conjunction with the proposed Private Placement the Corporation has agreed to offer up to 24,000,000 units (each a “Unit“) of the Corporation; representing approximately 19.866% of the presently issued and outstanding common shares of the Corporation (each a “Common Share“) as of the date hereof on a non-diluted basis; to the Investor at a price of $0.10 per Unit for gross proceeds of up to $2,400,000. Each Unit is comprised of one Common Share and one-half of one Common Share purchase warrant (each a “Warrant“) of the Corporation, with each whole Warrant entitling the Investor to purchase an additional Common Share at an exercise price of $0.20 per Common Share for a period of two years from closing of the Private Placement (the “Private Placement Closing“). The Private Placement is expected to close in the next three weeks.
Upon the successful completion of the entire Private Placement Closing the Investor shall immediately acquire an option (the “Option“), exercisable within 90 calendar days of execution of the Letter Agreement (the “Option Period“), to acquire a 10% registered and beneficial ownership interest in those certain coal licenses that together comprise the Flatbed Property located in the Liard Mining Division in Northeastern British Columbia, Canada (collectively, the “Flatbed Property“) for cash consideration of $5,000,000 (the “Acquisition“); pursuant to the terms and conditions of a proposed form of “Mineral Property Option Agreement” which is set forth in Schedule “B” thereto (the “Acquisition Agreement“); it being acknowledged and agreed that the final form of Acquisition Agreement will be mutually agreed upon prior to the Private Placement Closing (collectively, the “Acquisition Closing“). The Acquisition is is expected to close before year end.
Upon the successful completion of the Acquisition Closing, it is presently intended that the Private Placement and Acquisition proceeds will be utilized by the Corporation to complete the Corporation’s planned and mutually agreed upon Exploration Program on its Flatbed Property and for Corporation general corporate and working capital purposes resulting therefrom.

Colonial Coal CEO, David Austin, said:

I am very pleased that we have been able to identify a potential long-term partner for the development of the company’s various property and business interests. We are hopeful that this partnership will continue to grow as Colonial Coal explores its many options going forward.

Click here for the full press release.

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