Cobalt Coal Ltd. Announces the Private Placement of Convertible Debentures
March 21 2012 - 4:40PM
Marketwired Canada
Cobalt Coal Ltd. (TSX VENTURE:CCF) ("Cobalt" or the "Corporation") is pleased to
announce that it intends to complete a non-brokered private placement of up to
$1,000,000 of convertible redeemable debentures (the "Debentures"), which will
mature 24 months from the date of issuance (the "Maturity Date") and will bear
interest at a rate of 12% per annum payable on the Maturity Date (the "Debenture
Offering").
The Debentures will be convertible, by either the holder or the Corporation,
into units (the "Units") of the Corporation at a conversion rate of $0.15
principal amount of Debenture per Unit. Each Unit will be comprised of one
common share in the capital of Cobalt and one common share purchase warrant (a
"Warrant"). Each Warrant is subject to vesting conditions and will entitle the
holder to acquire one common share at $0.20 per share of Cobalt for a period of
two years from the closing of the Debenture Offering, subject to regulatory
approval.
The Corporation intends to use the proceeds from the Debenture Offering for
general working capital purposes and for the payment of expenses related to the
proposed acquisitions of Cobalt, as previously announced on March 8, 2012.
The Debenture Offering is subject to the approval of the TSX Venture Exchange
Inc. Pursuant to applicable securities laws, all securities issued pursuant to
the Debenture Offering will be subject to a hold period of four months following
the closing of the Debenture Offering. Certain directors and pfficers of Cobalt
may subscribe for Debentures pursuant to the Debenture Offering.
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 use of proceeds from the Debenture Offering and the timing of
closing of the Debenture 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 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 this forward-looking information.