Cobalt closer to closing KMH deal

FURTHER delays with completing an NI 43-101 report have again forced Toronto-listed miner Cobalt Coal to tweak the terms of its $15 million acquisition of some Virginia leases.
Cobalt closer to closing KMH deal Cobalt closer to closing KMH deal Cobalt closer to closing KMH deal Cobalt closer to closing KMH deal Cobalt closer to closing KMH deal

Courtesy Cobalt Coal.

Andy Graham

Calgary-headquartered Cobalt first announced the purchase of KMH Energy, a company controlling the 900 acre Mill Creek tract, in March.

Cobalt finally lodged the NI 43-101 report with Canadian securities regulators on Monday, which it says will enable the deal with KMH to close on December 14.

Meanwhile, it has paid KMH a further non-refundable deposit of $US300,000.

Cobalt had already paid about $220,000.

When the deal closes, it will owe KMH another $14 million – $700,000 in cash upfront and $13.25 million in three instalments, due in 2014, 2015 and 2016.

Cobalt has also agreed to spend at least $500,000 on improvements at Mill Creek before July 31 next year.

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