Global Met Coal Corporation
TSX VENTURE : GMZ
FRANKFURT : B1H

January 29, 2014 08:30 ET

Global Met Coal Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 29, 2014) - Global Met Coal Corporation (TSX VENTURE:GMZ) (FRANKFURT:B1H) (the "Company") provides the following corporate update on its activities.

Black Creek Mine Project

The Company has been working diligently since September 2011 on the development of the Black Creek Mine project, located in Jefferson County, Alabama.

The project covers over 400 acres and contains three coal seams having an aggregate thickness of up to five feet. Mining operations adjacent to the project are currently mining and selling coal from these seams. Current prices received for metallurgical and specialty coal range from US$140 to US$180 per ton in the region.

Progress has recently been achieved by the Company in three key areas. These include a coal acquisition agreement, permitting and financing.

New Letter of Intent Signed

The Company has signed a new letter of intent dated January 16, 2014 (the "LOI") by which the Company has been granted the exclusive right and option to purchase the surface rights for parcels of land comprised in the Black Creek Mine project. The LOI eliminates the US$3,000,000 purchase price for the land rights. The optionors will now receive US$30,000 upon execution of the LOI and an additional US$30,000 within ninety days after the execution of the LOI. Ninety days after obtaining a mining permit, the optionors will be paid US$20,000/month. In addition, the optionors will receive a 7% royalty payment on all coal sales.

Permitting

The Company has received the final permit Black Creek Mine NPDES Permit No. AL0081931 Jefferson County (073) from the Alabama Department of Environmental Management.

The Company will now focus on obtaining customers for the coal, contract miners and final mine design for construction.

The timetable for development should be finalized within a month and when that's complete, the Company will make a public announcement.

GRIT Financing

The Company announces that further to the news release dated September 30, 2013, it has signed a new subscription agreement dated January 22, 2014 with Global Resources Investment Ltd. ("GRIL"), an arm's length party to the Company, which replaces the original subscription agreement dated August 9, 2013. Under the new subscription agreement, the Company has agreed to subscribe for 414,937 new ordinary shares of Global Resources Investment Trust plc ("GRIT") at a subscription price of £1.00 per share. In consideration of the purchase of the GRIT shares, the Company has agreed to issue to GRIT 15,000,000 units at a deemed price of £0.0277 per unit, which is the equivalent of approximately $0.05 per share. Each unit will consist of one common share and one-half of one share purchase warrant. Each whole warrant will entitle GRIT to purchase one additional share of the Company at a price of $0.05 for 24 months. The value of the transaction is approximately $750,000 based on the current exchange rate. Upon closing the 15,000,000 shares will represent approximately 18.6% of the then issued and outstanding shares of the Company.

GRIL has been established to exploit investment opportunities in the junior mining and natural resources sectors worldwide, with an investment objective to generate medium and long-term capital growth. GRIL is seeking listing of its ordinary shares on the main market of the London Stock Exchange (LSE), and will be re-registered as a public company and constituted as a UK investment trust with the name 'Global Resources Investment Trust plc'. The Company will subsequently resell the GRIT shares through the facilities of the LSE to realize net cash proceeds. The Company intends to use the proceeds to fund ongoing development of the Black Creek Mine project in Jefferson County, Alabama, for acquisitions, and for general working capital.

Closing of the transaction is subject to a number of conditions precedent, including final acceptance of the TSX Venture Exchange, and GRIT successfully listing on the LSE.

ABOUT GLOBAL

Global Met Coal Corporation is an exploration and development company currently focusing on the acquisition of advanced stage properties with special emphasis on metallurgical coal projects. The Company's strategy is to maximize shareholder value through successful exploration and development.

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

  • Global Met Coal Corporation
    George Heard
    CEO, President & Director
    604-632-0085
    gwheard@shaw.ca