Global Met Coal Provides Corporate Update
January 29 2014 - 8:30AM
Marketwired
Global Met Coal Provides Corporate Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 29, 2014) -
Global Met Coal Corporation (TSX-VENTURE:GMZ) (FRANKFURT:B1H) (the
"Company") provides the following corporate update on its
activities.
Black Creek Mine
Project
The Company has been working diligently since September 2011 on
the development of the Black Creek Mine project, located in
Jefferson County, Alabama.
The project covers over 400 acres and contains three coal seams
having an aggregate thickness of up to five feet. Mining operations
adjacent to the project are currently mining and selling coal from
these seams. Current prices received for metallurgical and
specialty coal range from US$140 to US$180 per ton in the
region.
Progress has recently been achieved by the Company in three key
areas. These include a coal acquisition agreement, permitting and
financing.
New Letter of Intent
Signed
The Company has signed a new letter of intent dated January 16,
2014 (the "LOI") by which the Company has been granted the
exclusive right and option to purchase the surface rights for
parcels of land comprised in the Black Creek Mine project. The LOI
eliminates the US$3,000,000 purchase price for the land rights. The
optionors will now receive US$30,000 upon execution of the LOI and
an additional US$30,000 within ninety days after the execution of
the LOI. Ninety days after obtaining a mining permit, the optionors
will be paid US$20,000/month. In addition, the optionors will
receive a 7% royalty payment on all coal sales.
Permitting
The Company has received the final permit Black Creek Mine NPDES
Permit No. AL0081931 Jefferson County (073) from the Alabama
Department of Environmental Management.
The Company will now focus on obtaining customers for the coal,
contract miners and final mine design for construction.
The timetable for development should be finalized within a month
and when that's complete, the Company will make a public
announcement.
GRIT
Financing
The Company announces that further to the news release dated
September 30, 2013, it has signed a new subscription agreement
dated January 22, 2014 with Global Resources Investment Ltd.
("GRIL"), an arm's length party to the Company, which replaces the
original subscription agreement dated August 9, 2013. Under the new
subscription agreement, the Company has agreed to subscribe for
414,937 new ordinary shares of Global Resources Investment Trust
plc ("GRIT") at a subscription price of £1.00 per share. In
consideration of the purchase of the GRIT shares, the Company has
agreed to issue to GRIT 15,000,000 units at a deemed price of
£0.0277 per unit, which is the equivalent of approximately $0.05
per share. Each unit will consist of one common share and one-half
of one share purchase warrant. Each whole warrant will entitle GRIT
to purchase one additional share of the Company at a price of $0.05
for 24 months. The value of the transaction is approximately
$750,000 based on the current exchange rate. Upon closing the
15,000,000 shares will represent approximately 18.6% of the then
issued and outstanding shares of the Company.
GRIL has been established to exploit investment opportunities in
the junior mining and natural resources sectors worldwide, with an
investment objective to generate medium and long-term capital
growth. GRIL is seeking listing of its ordinary shares on the main
market of the London Stock Exchange (LSE), and will be
re-registered as a public company and constituted as a UK
investment trust with the name 'Global Resources Investment Trust
plc'. The Company will subsequently resell the GRIT shares through
the facilities of the LSE to realize net cash proceeds. The Company
intends to use the proceeds to fund ongoing development of the
Black Creek Mine project in Jefferson County, Alabama, for
acquisitions, and for general working capital.
Closing of the transaction is subject to a number of conditions
precedent, including final acceptance of the TSX Venture Exchange,
and GRIT successfully listing on the LSE.
ABOUT GLOBAL
Global Met Coal Corporation is an exploration and development
company currently focusing on the acquisition of advanced stage
properties with special emphasis on metallurgical coal projects.
The Company's strategy is to maximize shareholder value through
successful exploration and development.
Neither the
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.
Global Met Coal CorporationGeorge HeardCEO, President &
Director604-632-0085gwheard@shaw.ca