Colonial Coal International Corp., {TSX.V: CAD} further to their news release of Feb. 6, 2017, has now completed the balance of its non-brokered private placement, pursuant to which the corporation has now issued an aggregate of 51,952,661 units of the corporation, at a subscription price of 15 cents per unit, raising aggregate gross proceeds to the corporation of $7,792,900

CAD has also cancelled the partial sale of the Flatbed property.

Comment

In my opinion this looks a very good deal for shareholders, as Colonial are now well funded for drilling and exploration on both their principal projects, Huegenot and Flatbed, plus they have cancelled the partial sale of 10% of the Flatbed property.

I was never a fan of selling off a portion of the property, but conditions at the time it was considered were much different to now, coal prices were in the dumps, and it made sense at that time.

The prevailing coking coal price in Canadian dollar terms is now much higher than the FOB cost of mining and transporting, so can be mined at a healthy profit, and so the assets look attractive to investors again.

Colonial closes final tranche, cancels Flatbed sale

Mr. David Austin reports

COLONIAL COAL INTERNATIONAL CORP. COMPLETES FINAL CLOSING OF NON-BROKERED PRIVATE PLACEMENT

Colonial Coal International Corp., further to its news release of Feb. 6, 2017, has now completed the balance of its non-brokered private placement, pursuant to which the corporation has now issued an aggregate of 51,952,661 units of the corporation, at a subscription price of 15 cents per unit, raising aggregate gross proceeds to the corporation of $7,792,900. Additional information respecting the private placement is provided in the corporation’s most recent news release of Feb. 6, 2017.

Colonial Coal also announces that it is not proceeding, at this time, with its previously announced (May 2, 2016) sale of a 10-per-cent interest in the corporation’s Flatbed property and related unit private placement.

About Colonial Coal International Corp.

Colonial Coal is a publicly traded coal corporation in British Columbia that focuses primarily on coking coal projects. The Northeast coal block of British Columbia, within which the corporation’s projects are located, hosts a number of proven deposits, and has been the subject of merger and acquisiiton activities by Xstrata, Walter Energy, Anglo-American and others.