Through the newly incorporated private company, interests to be sold to Nebo include a 19.91% equity interest in Carbhid SAS, Colombia-based coal producer which holds an operating contract on the Escalones concession in the Boyaca district for developing underground coal mining operations targeting thermal and metallurgical-grade coal.
The letter of intent also includes option to acquire a 75% interest in the Pelaya exploration prospect, in the Cesar district of northern Colombia for cash payments of $ 3.8m, payable over five years.
A 100% interest in Andean Coal Alliance (BVI), a company incorporated in the British Virgin Islands and owned by Lara (50%) and Kiwanda (50%), is also included in the interests.
Under the terms of the sale, which is subject to approvals, Nebo will issue 10,000,000 post consolidated common shares at a deemed price of C$ 0.50 per share, representing a deemed acquisition value of $5,000,000.
