The purchase agreement includes all of Samuel Coal’s existing properties, multiple permits, operations and mineral resources.
Funding will be obtained initially by a cash down payment paid by Modern Coal to Samuel Coal by 20 June 2011 and the balance owed will be paid on the closing date of the transaction on 11 August 2011.
The mines are located on approximately 5,000 acres near Hindman in the eastern part of Kentucky, UK.
Samuel Coal properties which have abundance of resources will be able to ramp up production and move forward with multiple letters of intent already in place for the joint venture.
This acquisition will enable US based coal mining company Abundance Coal to fulfill its previously announced mining contract agreement with Samuel Coal.
