Cobalt Coal Ltd. (CCF.V) announced the closing of the acquisition of metallurgical coal bearing leases in Virginia.
One of the tracts associated with the property acquisitions, the Mill Creek Tract, is permitted for production and has received approval to allow for the construction of a coal preparation plant.
In connection with the closing of the property acquisitions, Cobalt received a loan of $700,000 from a non-arm's length party which was used to fund the amount payable at closing.
A promissory note in the amount of $13,250,000 was granted to the vendors and is required to be paid over three years starting in December 2013.
Cobalt has also committed to drilling five test holes and spending a minimum of $500,000 on mine improvements on the Mill Creek Tract.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
