The deal – made with a private party for a purchase price of $US4 million – complements other prior acquisitions the company has made in the Santander district of Colombia.
The newest properties, known as the Ruku concessions, are located near Socota, Boyaca.
CCPF said the Ruku agreement gave it a 70% working interest, including active metallurgical coal mining operations currently producing about 10,000 tons of coal annually. The company intends to invest additional capital over the next two years to increase production.
“This is an important transaction for our company, not only because it adds additional properties to our portfolio, but because we are also acquiring an operating, fully-permitted mine,” Colombian subsidiary president Carlos Soto said.
“The acquisition of the Ruku concessions accelerates our plans to become a producer of metallurgical coal for the global market. While we will continue to evaluate additional properties for acquisition, our near-term focus is to prove our reserves, while advancing additional production facilities into operation.”
CCPF has paid an initial $500,000 towards the purchase price and will forward the balance in incremental payments over the next three years. The exact amount will be based on proven reserves determined by an upcoming exploration program, among other conditions.
