CALGARY, ALBERTA--(Marketwire - July 29, 2011) - Cobalt Coal Ltd. ("Cobalt" or the "Company") (TSX VENTURE:CCF - News), is pleased to report that it 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% of the holders of Units in Westchester Coal Limited Partnership (the "Partnership") have accepted the offer made to them by the Company. Upon closing of the acquisition of the Units, Cobalt intends to acquire 100% 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.
About Cobalt
Cobalt is a publicly traded coal exploration and production company headquartered in Calgary, Alberta, Canada with a regional office in Welch, West Virginia USA. Cobalt was created to capitalize on the growth opportunities that exist 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.
READER ADVISORY
Statements in this news release may contain forward-looking information including the timing of the equity financing and future sale volumes of the Company. 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 Company. 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 this forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.