Option payment received for sale of the Basin Coal Mineadmin
February 12, 2009 Filed Under: Coal Mining, Mining Stocks
Compliance Energy Corporation announces that further to the Company’s announcements on August 7, and December 18, 2008 regarding an option to NWPC Pty Ltd for the purchase of 100% of the Company’s interest in the Basin Coal Mine located near Princeton BC, for consideration of cash and shares totaling $8.25 million, the Company has now received the February 2009 option payment of $1,000,000 and 7,407,408 shares in Jameson Resources Limited (”JAL”). The shares are listed on the Australian Exchange under the symbol of JAL and are subject a one year escrow provision.
The following payments remain due under the terms of the option agreement:
a) An option exercise payment of $3,100,000 in cash plus closing adjustments and 7,407,408 shares in JAL on or before May 31, 2010 at which time the Company’s interest in the mining agreement would transfer.
b) 7,407,408 shares in JAL on or before the earlier of commencement of coal production and May 31, 2012.
Completion of the transaction contemplated by this Agreement will allow the company to focus its activities on the Raven and Bear coal deposits on Vancouver Island as announced in the Company’s news release dated December 1, 2008.