VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2013) - Colonial Coal International Corp. (TSX VENTURE:CAD) (the "Company" or "Colonial" - David Austin, President and CEO), is pleased to announce that the Company has acquired its industry participant joint venture partner's (the "Participant") interest under the memorandum of understanding ("MOU") with the Lax Kw'alaams Band and Metlakatla First Nations (collectively, the "Coast Tsimshian Nation") relating to 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 for the purchase of the Watson Island Land. The acquisition brings the Company's ownership interest in the joint venture to 90%. The Company looks forward to the joint venture taking over the existing operations on Watson Island which is subject to completion in accordance with definitive documentation currently being negotiated.
As a result of the acquisition, the Company is now solely responsible for the obligations of the Coast Tsimshian Nation to compensate the City of Price Rupert for land expenses from December, 2012 onwards 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 retains the right, in its 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 definitive agreements yet to be completed (the "Definitive Agreements"). Execution of the Definitive Agreements is subject to a number of conditions for the benefit of the Coast Tsimshian Nation and the Company and common to agreements of this nature, including, among other things, further due diligence and management approval.
About Colonial Coal International Corp.
Colonial is a publicly traded pure-play coking coal company in British Columbia. The northeast Coal Block of British Columbia, within which our Company's projects are located, hosts a number of proven deposits and has been the subject of M&A activities by Xstrata, Walter Energy, Anglo and others.
Additional information can be found on the Company's website www.ccoal.ca or by viewing the Company's filings at www.sedar.com.
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 except as required by law, 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.
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Colonial Coal International Corp.
Colonial Coal International Corp.