VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 3, 2011) - Colonial Coal International Corp. (TSX VENTURE:CAD) (the "Company" or "Colonial" - David Austin, President and CEO), is pleased to announce that the Company and an industry participant have executed a memorandum of understanding ("MOU") with the Lax Kw'alaams Band and Metlakatla First Nations (collectively, the "Coast Tsimshian Nation") for the formation of a joint venture for the potential acquisition of the Watson Island site (the "Watson Island Land") pursuant to an exclusivity agreement (the "Exclusivity Agreement") between the Coast Tsimshian Nation and the City of Prince Rupert whereby the Coast Tsimshian Nation have an exclusive arrangement with the City of Prince Rupert to purchase the Watson Island Land.
As part of the MOU, and to support the ongoing feasibility investigation of the development of the Watson Island Land, the Company and its MOU partner have agreed to assume the obligation of the Coast Tsimshian Nation to compensate the City of Price Rupert for actual land expense in accordance with the terms of the Exclusivity Agreement. It is anticipated that such payments will be made for the term of the Watson Island Land feasibility investigation although, under the MOU, the Company and its partner reserve the right, in their sole discretion, to terminate the payments at any time.
The MOU is non-binding except in certain limited respects but sets out the general terms and parameters regarding the potential financing, development and use of the Watson Island Land and certain terms and conditions that are proposed to be included in a definitive agreement to be completed (the "Definitive Agreement"). Execution of the Definitive Agreement is subject to a number of conditions for the benefit of the Coast Tsimshian Nation, the Company and its partner and common to agreements of this nature, including, among other things, further due diligence and management approval.
Information set forth in this news release may involve forward-looking statements. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with marketing and sale of securities; the need for additional financing; reliance on key personnel; the potential for conflicts of interest among certain officers or directors with certain other projects; and the volatility of common share price and volume. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.Neither 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.