Cobalt Coal Ltd announced that it intends to complete a private placement of up to USD 100,000 of convertible redeemable debentures, which will mature 24 months from the date of issuance and will bear interest at a rate of 12% per annum payable on the maturity date.

The terms of the Debenture Offering are the same as the offering of Debentures that was completed on June 8, 2012 as previously announced.

The Debentures will be convertible into units with each Unit comprised of one common share of the Corporation and one warrant to acquire a common share of the Corporation at an exercise price of USD 0.20, on the basis of 6,666 Units per USD 1,000 principal amount of Debentures and interest, subject to regulatory approval.

The Corporation intends to use the proceeds from the Debenture Offering for payment of the due diligence expenses related to mezzanine debt financing options being pursued by the Corporation.

The Debenture Offering is subject to the approval of the TSX Venture Exchange.

Source - Cobalt Coal Ltd

(www.coalguru.com)