Terms of the purchase include certain fees to be paid to the Colombian Ministry of Mines and additional purchase consideration to the present owner of the concessions, as well as a small royalty per ton of coal produced and sold under each concession.
Closing is subject to final government approval of the transfer of the concessions, which the company anticipates shortly.
In anticipation of the closing, the company is commencing its exploratory drilling program, which will consist of multiple core drillings throughout the concessions.
The intent of the drilling program is to provide information on the size and quality of the coal resource as the company moves to further define the resource and begin pre-feasibility work on a formal mining plan.
Colombia Clean Power & Fuels CEO Edward Mooney said that with the start of its drilling program, the company is on track to meet its goal of controlling in excess of 300 million tons of proven metallurgical coal reserves.
Colombia Clean Power & Fuels, formerly Freedom Resource Enterprises, is developing coal mining, coal coking and clean coal technology operations in the Republic of Colombia.
