February 1, 2011 - CALGARY, AB - Cobalt Coal Corp. ("Cobalt" or the "Company") (TSX-V: CBT), announces that it intends to complete a private placement today on an expedited basis (the "Offering") of 3,500,000 units of the Corporation (the "Units") at a price of $0.09 per Unit for gross proceeds of $315,000. Each Unit consists of one common share ("Common Share") and one common share purchase warrant ("Warrant"). Each Warrant entitles the holder to acquire one Common Share at $0.12 per share until February 1, 2013.
Cobalt has engaged agents to act as agents of Cobalt on a "commercially reasonable efforts" basis for the Offering, and in connection therewith will pay acash commission of 8% on the proceeds raised in the Offering. The agents will also be granted broker warrants (the "Broker Warrants") to purchase 8% of the number of Units sold under the Offering, with each Broker Warrant entitling the holder to purchase one Unit at $0.09 per Unit until February 1, 2013.
Although the Offering will close later today, it is subject to the final approval of the TSX Venture Exchange Inc.
Proceeds of the Offering will be used to fund the permitting of the previously announced Westchester Expansion, as well as to pursue additional acquisition and expansion opportunities for Cobalt.
The Common Shares and Warrants issued pursuant to the Offering will be subject to a four month hold under applicable securities laws.
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 in August 2007 to capitalize on the growth opportunities that exist in the modem metallurgical coal mining industry.
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.
For more information, please contact:
Mike Crowder
CEO, Cobalt Coal Corp.
Office: 304-436-2390
mike@newtechmining.eom
Robert Gillies
CFO, Cobalt Coal Corp.
Office: 403-538-8455
bob.gillies@sympatico.ca
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 closing of the Offering and the intended use of proceeds of the Offering. 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.