Business
EastCoal Inc. Announces Letter Of Intent for Acquisition of US-Based Coal Assets
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED S...
About this update from Cotec Holdings Corp
[{"type":"text","content":"EastCoal Inc. Announces Letter Of Intent for Acquisition of US-Based Coal AssetsNOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / January 27, 2020 / EastCoal Inc. (TSXV:ECX-H) (\"EastCoal\" or the \"Company\") is pleased to announce that it has entered into a letter of intent dated January 27, 2020 (the \"LOI\") with American Mining Group, LLC (\"AMG\") and Bluff Mountain Development LLC (\"Bluff Mountain\"). Pursuant to the LOI, the Company will, subject to certain conditions, complete a transaction to purchase 100% of the LLC membership interests of AMG and certain land from Bluff Mountain (together, the \"Sellers\") (collectively, the \"Transaction\").Upon completion of the Transaction, the Company will own all of the assets and liabilities of AMG, including, but not limited to certain coal leases in Fayette County, West Virginia as well as land adjacent to the coal leases.The TransactionPursuant to the terms of the LOI:(a) EastCoal will acquire all of the issued and outstanding share capital of AMG, a company that owns the coal leases of the Spring Dale coal property (the \"Spring Dale Property\") located in Fayette County, West Virginia for a purchase price of US$957,500 to be paid as common shares in the capital of EastCoal (the \"Shares\");(b) EastCoal will acquire land adjacent to the Spring Dale Property from Bluff Mountain for a cash payment of US$42,500; and(c) EastCoal will enter into a definitive agreement (the \"Definitive Agreement\") with the Sellers.Closing of the Transaction will be subject to, among other things, the following conditions:(a) entry into the Definitive Agreement;(b) the Company completing a financing (the \"Financing\") to raise funds for the resumption of mining activity on the Spring Dale Property;(c) entry into certain agreements by the Company with creditors of either AMG or Bluff Mountain, as applicable;(d) the Company being satisfied as to the results of its due diligence investigations of the Sellers; and(e) receipt of all required regulatory approvals, including approval from the TSX Venture Exchange (the \"TSXV\").If completed, the Transaction will constitute a \"Fundamental Acquisition\" of the Company, for the purposes of the policies of the TSXV, and will require the Company to, among other things, prepare an...