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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.

Andy Graham
Cobalt closer to closing KMH deal

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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