Cobalt Coal Ltd.
TSX VENTURE : CCF

Cobalt Coal Ltd.

January 09, 2014 08:31 ET

Cobalt Coal Ltd. Announces Receipt of Default Notice from Virginia Property Vendors and Senior Secured Lender

CALGARY, ALBERTA--(Marketwired - Jan. 9, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Cobalt Coal Ltd. (TSX VENTURE:CCF) ("Cobalt" or the "Corporation") announces that it has received a notice of rescission of the Share Purchase and Sale agreement from the vendors of the Virginia properties that were previously disclosed in Cobalt's news releases of December 19, 2013, March 8, 2012, July 11, 2012, July 17, 2012, November 19, 2012 and November 20, 2012 (the "Notice"). The Notice was served as a result of the assertion by the vendors that certain conditions of the promissory note issued by Cobalt at closing of the Virginia property acquisition were not met, including the payment of the second tranche payment thereunder in the amount of $1,000,000 plus interest.

As a result of the Notice, Cobalt has also received default notice from its senior secured lender which includes notice of acceleration such that the amount due of approximately $1.8 million USD pursuant to the senior secured credit facility is immediately due and payable.

Cobalt is continuing with ongoing discussions aimed at curing the defaults within the 60 days permitted under the agreements; however, no assurance can be given that these efforts will be successful.

About Cobalt

Cobalt is a publicly traded coal exploration and production company headquartered in Calgary, Alberta, Canada. Cobalt was created to capitalize on the growth opportunities that exist in the metallurgical coal mining industry.

Neither the TSX Venture Exchange Inc. 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.

Reader Advisory

This News Release contains certain forward-looking statements and other information (collectively "forward-looking information") about the Corporation's current expectations, estimates and projections. Forward-looking information is often identified by words such as "anticipate", "intend", "believe", "expect", "plan", "could", "focus", "proposed", "scheduled", "continuing", "potential", "may" or similar expressions and includes, but is not necessarily limited to, suggestions of future outcomes, including statements about the development of the Property Acquisitions. Readers are cautioned not to place undue reliance on forward-looking information as the Corporation's actual results may differ materially from those expressed or implied in the forward-looking information.

All subsequent forward-looking statements, whether written or oral, attributed to Cobalt or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional information on the foregoing risks and other factors that could affect Cobalt's operations are on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this News Release are made as at the date of this News Release and Cobalt does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Contact Information