Cobalt Coal Secures Purchase Agreement

Cobalt Coal Corp. (TSX:V CBT)
Basic Shares: 50.4 million
Fully Diluted: 57.6 million

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Investors watching Cobalt Coal saw the stock halted at today’s open. Reason being, the company signed a sales contract with Riverside Energy Inc., a wholly owned subsidiary of Alpha Natural Resources Inc. (NYSE:ANR). Riverside has agreed to purchase 8,000 tons of coal per month from Cobalt’s Westchester property, located in West Virginia. The term of the contract is for one year. The price at which Riverside will purchase the coal was not disclosed for “competitive reasons”; however investors must consider the current strength of the price of metallurgical coal when trying to evaluate the potential impact of this deal. The company has targeted this March to start production.

Here is a quick overview of Alpha Natural Resources.

Alpha Natural Resources is one of America's premier coal suppliers with coal production capacity of more than 90 million tons a year. Alpha is the nation's leading supplier and exporter of metallurgical coal used in the steel-making process and is a major supplier of thermal coal to electric utilities and manufacturing industries across the country. The company, through its affiliates, employs approximately 6,200 people and operates more than 60 mines and 14 coal preparation facilities in the regions of Northern and Central Appalachia and the Powder River Basin. More information about Alpha can be found on the company's Web site at www.alphanr.com.

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