Business
Radar Signs LOI to Purchase a 25% Interest in a Producing Alabama Coal Company
Radar Signs LOI to Purchase a 25% Interest in a Producing Alabama Coal Company
About this update from Lincoln Gold Mining Inc
[{"type":"text","content":"Radar Signs LOI to Purchase a 25% Interest in a Producing Alabama Coal Company\n\n\n\nRadar Signs LOI to Purchase a 25% Interest in a Producing Alabama Coal Company\n\nVancouver, British Columbia CANADA, March 31, 2009 /FSC/ - LPT Capital Ltd. (LPC.P - TSX Venture), is pleased to announce that Radar has signed a letter of intent (the \"LOI\") to acquire an ownership stake in (the \"Transaction\") a private Alabama company (\"PrivateCo\") whose assets include a producing Alabama coal property (the \"Property\"). \"This is an exciting development as Radar will generate income and cash flow from this investment in an operating coal mine upon closing of the transaction which will reduce Radar's dependency on the financial markets for ongoing funding\" said Timothy Bergen, CEO of Radar. Also, this agreement envisions a strategic partnership with PrivateCo to identify, acquire and develop additional coal properties. \n\nTHE LOI\n\nPursuant to the LOI, the Transaction will result in Radar purchasing from JLM's treasury, shares (\"JLM Shares\") such that Radar will own 25% of the issued and outstanding JLM Shares after such issuance in exchange for US$1,000,000 cash (the \"Transaction Consideration\"). In addition, pursuant to an option (the \"Option\"), commencing 12 months after the completion of the Transaction, Radar will have a 12 month option to purchase directly from a shareholder of PrivateCo, for an aggregate exercise price of US$1,500,000, an amount of JLM Shares such that Radar will own approximately 51% of PrivateCo after exercise of the Option. The LOI contemplates the negotiation and execution of definitive documents in relation to the Transaction by April 15, 2009 and completion of the Transaction by May 15, 2009. Upon completion of the Transaction, Radar will have the right to nominate one director to the board of PrivateCo. The LOI contains a covenant that the Transaction Consideration will be used to advance JLM's business strategy of adding potential coal resources and increasing coal production. The LOI contains standstill provisions such that PrivateCo and Radar will not participate in any activities which may reduce the likelihood of the success of the Transaction. \n\nTHE PROPERTY\n\nThe Proper...