Financial details of the definitive agreement with seller Erasmo Almanza were not disclosed.

VSUS is taking over San Jose Mining, as it has referred to the entity, as an operating subsidiary for its coal operations in the South American country.

“The company acquired concession contract ILE-09551 from Erasmo Almanza in February 2011,” officials said.

“According to Article 22 from Law 685 of 2001, upon approval by the National Mining Agency, Mr Almanza can cede title of the concession contract to the company's wholly owned subsidiary.”

The company said no issues with the title transfer were anticipated.

It has also given some consideration to the executive structure for the new entity, confirming it intends to elect Almanza as a director.

“Mr Almanza holds title to, or has solicited for, over 4000 (hectares) of metallurgical coal concessions in central Colombia,” the company said.

“[He] brings over 40 years of experience in the coal, oil and gas industries in Colombia and the United States.”

Almanza, a petroleum engineer by trade, is currently general manager of Compania Minera San Jose, a seat he has held since 2000.

In all, Almanza has been exploring for central Colombian coal for over 15 years.

VSUS said its name and symbol change were expected to take effect on January 22.

It has paid its last remaining convertible note with Asher Enterprises in full.

“The retirement of this debt not only significantly reduces company liabilities but also the expense associated with carrying that debt and the ability of that debt to be converted and dilute the shares outstanding,” the company said.

Its 100%-owned La Tabaquera mine has an estimated 15 to 17 million tonnes of reserves, about 70% metallurgical and 30% thermal.

Once the necessary financing is obtained, the company plans to have three revenue producing business units in Colombia – coal mining; coking oven facilities; and docks, river and rail transportation to export terminals in the country.

The company is looking at allegiances with US universities to study the capture of Colombian coalbed methane.