Under the terms of the agreement, effective from 01 October 2013, , Blaze Energy will purchase annually a minimum of $4,080,000 worth of mined coal for processing from GreenFields
The company will also make advances on its coal purchase in the amount of $500,000 to GreenFields.
Blaze Energy chairman and CEO Leon Blaser said, "With its existing reserves, rail accessibility, and geographic location, the ability to operate out of the GreenFields site was critical to the Company’s business model, and the fulfillment of the pending coal sales agreement abroad."
The company will process the high-quality, metallurgical grade coal for re-sale domestically and abroad and the full performance is expected to result in $117m in gross revenues annually with net revenue of approximately $26m based on internal projections.
With an initial term of 24 months, the agreement has renewals for an additional 48 months if agreed to by the company and GreenFields.
The GreenFields coal mine was previously owned and operated by US Steel Corporation.
