The transaction, the financial details of which were not disclosed, expands the company’s coverage to 10,357 hectares (25,594 acres) and speeds up its drilling exploration capabilities. All the concessions are located in the Otanche municipality.

CCP&F has completed a legal and preliminary geologic due diligence effort, and plans to deploy drilling exploration equipment immediately. It has expanded its local team of geologists, including one dedicated to the Otanche concessions, and those workers will direct the exploratory drilling program at the site as part of the prefeasibility for a formal mining plan.

“Consideration for these additional concessions would include payments to the sellers plus future royalties to the sellers based on production,” the company said.

“The consummation of this transaction is subject to confirmatory drilling and final government approval, which the company anticipates prior to the end of this year.”

CCP&F noted that the acquisitions complemented the exploratory drilling program at its other properties in the North Block area of Colombia.

"Boreholes at our North Block concessions have confirmed multiple coal seams at least 1.5 meters thick,” chief operating officer Graham Chapman said, adding that samples had been sent to laboratories for analysis.

“Our current focus is on proving coal reserves and coal quality across all of our concessions – with an emphasis on metallurgical coal reserves.”

Colombia Clean Power and Fuels plans to build and operate mines to extract both metallurgical and high-grade thermal coal, while also implementing advanced coal technologies, such as coal gasification and coal-to-liquids, to produce and sell metallurgical coke and other clean-energy derivatives.