Radar Acquisitions Corp.
TSX VENTURE : RAC

Radar Acquisitions Corp.

April 15, 2010 19:38 ET

Radar Acquisition Corp. Signs Coal to Liquids Licensing Agreement and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - April 15, 2010) - Radar Acquisitions Corp. ("Radar" or the "Company") (TSX VENTURE:RAC) is pleased to report that it has signed a licensing agreement (the "Agreement") with C2E Global Ltd, a Honk Kong Company, ("C2E') for the exclusive rights to a proprietary Coal to Liquids Technology (the "CTL-T"). The CTL-T is a proprietary technology which converts coal into liquid fuels (e.g. oil, jet fuel) at an economical cost with zero air born emissions. An existing plant in China is currently using CTL-T and has the capability to produce 100,000 tons of fuel oils per annum which is approximately 1,900 barrels of oil equivalent per day ("boepd").

The Agreement provides the Company with an opportunity to further develop its coal portfolio and Radar will, in particular, be focused on leveraging this technology on its existing coal resources and assets in Alabama and Colorado.

Terms of the Agreement

The major terms of the Agreement are a follows:

  • Radar has an exclusive, perpetual, right to use, develop, patent, market, sell and commercialize the CTL Technology in the states of Alabama, Colorado and Montana of the United States of America.
  • Radar has a right of first refusal to acquire any license of the CTL Technology for Canada.
  • Radar has an opportunity to obtain a license for specific project opportunities that it proposes to C2E in any of the remaining states of the United States of America.
  • The development of Coal to Liquids Plants ("CTL Plants") will be pursued by the parties with Radar and C2E having the right to participate for a 50% ownership stake each in any and all CTL Plants. C2E and RADAR will share development costs and profits according to the ownership criteria above.
  • Radar and C2E will jointly fund all project feasibility costs at a rate of 50% each.
  • The term of the Agreement is for a period of 3 years.

Entering into the Agreement is an exempt transaction pursuant to the policies of the TSX Venture Exchange (the "TSXV") and does not require the approval of the TSXV.

Termination of RTO Agreement

The Company has terminated the binding letter of intent entered into on December 2, 2009 with C2E and therefore will not be incurring any dilution to the shareholders while still achieving access to the CTL-T through entering into the licensing agreement.

Coal to Liquid Strategy

Alabama

Radar has identified a permitted CTL-T proposed plant site in Alabama within 1/2 mile from our current coal mining operations. A viability and development strategy is being utilized that will target to finance and construct a 100,000 ton of fuel oils per annum CTL-T plant with production commencing by Q4 2011 (1,900 boepd).

Colorado

Radar's 100% owned Buick Coal Property in Colorado, which holds significant coal resources in Colorado, USA (estimated at 291 million tons of indicated and inferred lignite resources per the technical report entitled "Limon Lignite Project, Elbert County, Colorado, USA," dated October 26, 2007 and filed on SEDAR on November 2, 2007), is ideally suited for a coal to liquids plant and the Company intends to move forward in performing feasibility work using the newly acquired clean coal CTL-T technology for a 1 million ton plant of fuel oil per year (19,000 boepd). The Buick Coal Property is a greenfield resource opportunity with feasibility & permitting work estimated to take12-24 months.

"This Agreement will assist us in achieving our initial goal of deriving additional value out of our Alabama coal strategy and unlocking the significant value of our estimated 291 million tons of indicated and inferred lignite resources in our 100% owned Buick Coal Property in Colorado. In addition, this transaction will not result in further dilution of our existing shareholders while at the same time position us for the creation of shareholder value in the future," said Timothy Bergen, CEO of Radar. "This Agreement will also provide for a good foundation to broaden our partnership with C2E in the future."

The Company is also reporting that coal sales through its 49% owned company, RAC Mining LLC, were 6,316 tons in March 2010 up from 4,537 and 5,481 tons in January and February 2010, respectively. A further update on the Alabama coal operations will be provided shortly.

Trading of Radar's common shares is anticipated to start on April 19, 2010.

OTHER INFORMATION

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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.

Contact Information

  • Radar Acquisitions Corp.
    Tim Bergen
    President & CEO
    403.262.3797 or Toll Free: 1.877.262.5888
    tbergen@radar.ab.ca