November 27, 2009 Radar Closes Transaction to Create US Coal Mining Company
Calgary, AB -- November 27, 2009 - Further to a press release dated September 23, 2009, Radar Acquisitions Corp. (TSXV: RAC) ("Radar") is pleased to announce that Radar has closed the transaction (the "Transaction") to create a US coal mining company ("RAC Mining") in partnership with a group of private investors in Alabama. Pursuant to the Transaction, Radar owns 49% of RAC Mining with the remaining ownership being held by two Alabama based mining companies. The assets of the newly created company include a historically producing Alabama coal property.
"This is an exciting development as Radar anticipates commencement of coal operations by RAC Mining by the beginning of December and anticipates generation of cash flow from this investment. Both the mining permit and mining extension permit that were pending upon the signing of the LOI have been released and are now active" said Timothy Bergen, CEO of Radar. Also, this collaboration with the private investors envisions a strategic partnership to identify, acquire and develop additional coal properties in Alabama that compliment the assets in this Transaction as well as Radar's other two projects under development: the Buick Coal Project which holds significant coal resources in Colorado, USA (estimated at 188 million tons of indicated and 103 million tons of inferred lignite resources as described in the technical report entitled "Limon Lignite Project, Elbert County, Colorado, USA," dated October 26, 2007 prepared by Karl M. Kolin, P.E. of Tetra Tech MM, Inc., which is filed on SEDAR), and the RPS Fuels joint venture which develops engineered solid fuel products from waste coal and biomass.
Pursuant to the Transaction, Radar purchased a 49% interest in RAC Mining from treasury for US$1,000,000 paid by a combination of cash and notes. Radar's partners now own 51% of RAC Mining in exchange for the contribution of mining rights associated with two active mining permits and two mining leases.
In addition, the Transaction resulted in Radar receiving a 36 month option to purchase 51% ownership in a private Alabama coal mining company directly from a shareholder of such company for an aggregate exercise price of US$1,500,000.
RAC Mining holds the following permits: 1) active mining permit and extension #3868; and 2) active mining permit # 3933. The active permits are adjacent to each other and all lands are in Jefferson County, Alabama. In addition, RAC Mining holds two mining leases: one for 80 acres on adjacent lands to the active permits and one for approximately 640 acres on lands in the Franklin, Marion and Winston Counties, Alabama. The mine permitting process has started on the 640 acres of leased lands and the mining permit is expected to be issued in the first or second quarter of 2010.
Subsequent to the closing of the Transaction, RAC Mining signed into an agreement to purchase mining equipment valued at US$1,100,000 through a combination of 40% debt and 60% equity.
At the closing of the Transaction, RAC Mining signed into a Contract Mining agreement with one of the partners in the Transaction.
The Transaction is an arm's length transaction.
Dennis Nikols P. Geo., a qualified person, has reviewed and verified the technical mining information contained in this news release.
About Radar Acquisitions Corp.
Radar is a natural resource development company focused on growth through the acquisition, exploration and development of coal resources and resource-related technologies. Radar has currently two projects under development: the Buick Coal Project which holds significant coal resources in Colorado, USA (see the technical report entitled "Limon Lignite Project, Elbert County, Colorado, USA," dated October 26, 2007 and filed on SEDAR on November 2, 2007), and the RPS Fuels joint venture which develops engineered solid fuel products. Other coal and related opportunities continue to be evaluated on an ongoing basis. For more information about Radar, go to www.radar.ab.ca.
For Further Information:
Corporate Head Office:
Timothy J. Bergen, President
Toll Free: 1.877.262.5888
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that terms is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. Additionally, the company assumes that coal production and cash flows from coal production of RAC Mining will continue to be equal to or better than historical coal production and cash flows from the interests acquired by RAC Mining. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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