KJS and Jeantex will form a joint venture company to operate the mine. Jeantex will provide cash investments as well as technology transfer, management, sales and marketing to the venture.
KJS currently operates the mine and owns the rights to exploit coal deposits in a 1,400-acre area at Yeon Chun Goon, Korea. Test data have shown the coal deposits to be consistent with a caloric value of 7,200 and moisture of less than 1%. KJS estimates the mine has mineralized deposits amounting to 200 million metric tons.
Jeantex was previously engaged in the textile-apparel clothing industry. The company discontinued its apparel business in the fourth quarter of 2006. It is now in the process of restructuring into two divisions: construction materials and energy and resources.
