Under the deal, the remaining balance will be paid on the closing date of the transaction on 11 August 2011.

The purchase price was initially funded by a cash down payment paid by Modern Coal to Samuel Coal.

According to the companies, this acquisition will enable US-based coal mining firm Abundance Coal to fulfill its previously announced mining contract with Samuel Coal.

The companie will be able to increase production and move forward with multiple letters of intent which are already in place.

The joint venture partners plan to buy all of Samuel Coal’s existing properties, multiple permits, operations and mineral resources.

The mines are located on approximately 5,000 acres near Hindman in the eastern part of Kentucky, US.