Pursuant to the Da Wa Coal agreement, Shanxi Coal will pay Da Wa Coal an aggregate purchase price of $27.8m in cash, of which approximately $6.8m is for the tangible assets and approximately $21m for the mining rights and compensation to Da Wa Coal.
The first installment of $4.2m to Da Wa Coal was settled within three days of the execution of the Da Wa agreement. The second installment of $18.1m was paid in the last week of June, after the registration and ownership certificates of the mining rights and land and property deed were transferred to Shanxi Coal.
The remaining purchase price of $5.6m will be settled upon the one year anniversary of the completion of the transfer, Puda Coal said.
Pursuant to the Guanyao agreement, Shanxi Coal agreed to pay Guanyao Coal an aggregate purchase price of $13.9m in cash, of which approximately $5.5m is for the tangible assets and approximately $8.4m for the mining rights and compensation of Guanyao Coal.
The first installment of $2.1m to Guanyao Coal was carried out within three days of the execution of the Guanyao agreement and the second installment of $9.1m was paid in the last week of June, after the registrations and ownership with respect to the mining rights and land and property deed were transferred to Shanxi Coal. The remaining balance of $2.8m will be executed upon the one year anniversary of completion of the transfer.
The Yunchen municipal coal mine authority has approved Da Wa Coal and Guanyao Coal to proceed with mine improvements at their current capacity level.
