Source: Proactive Investors Australia
Article Date: 17/12/2012
White Energy Company to acquire U.S. open cut coal mine
Monday, December 17, 2012 by Angela Kean
White Energy Company (ASX: WEC, OTCQX: WECFY) has plans to acquire an existing open-cut coal mining operation in the Central Appalachia region in the U.S. for US$21.5 million (A$20.4 million).
The company has signed an exclusive 90-day option agreement to acquire the mining operation, which includes all mine infrastructure, plant and equipment, permits and a US$200,000 option fee.
The Central Appalachia region is well endowed with abundant natural resources.
The coal currently being mined at the site is a specialty low-ash coal which is sold to niche markets at an attractive premium.
There is also the potential to utilise BCB technology to process the coal fines from operations at the mine.
White Energy has previously tested coal fines sourced from a mine in the Central Appalachia coalfields at its Cessnock Production Plant, which has delivered encouraging results.
As part of the acquisition, the company will be required to replace current security bonds of about US$7.5 million on settlement of the proposed transaction.
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