The trio of companies said Lara and Kiwanda would transfer the sale items into a newly incorporated arm BC Newco that would then be acquired by Nebo.

They include a 19.91% equity interest in Bogota producer Carbhid SAS , which holds an operating contract on the Escalones concession or developing underground coal mining operations targeting thermal and metallurgical-grade coal.

It will also have the option to acquire a 75% interest in the Pelaya exploration prospect in the Cesar district for $C3.8 ($A3.9) million cash, payable over five years.

Finally, it will gain a 100% interest in Andean Coal Alliance (BVI). BVI, incorporated in the British Virgin Islands, is owned jointly and equally by Lara and Kiwanda.

Under the terms of the deal, Nebo will consolidate its common shares on a three-for-one basis, issuing 10 million post consolidated common shares at a deemed price of C50c a share to represent a deemed acquisition value of $C5 million.

It will also officially change its name and complete the private placement.

The sale is still subject to approvals. No timeline for completion was provided.

Lara confirmed in mid-November it had increased its stake in Carbhid.

One week later is said it had signed an option to acquire the rights to the Pelaya prospect in a $C3.8 million deal.

Lara holds a diverse portfolio that includes properties in Brazil, Peru, Colombia and Chile.