Pittsburgh-based producer of natural gas and coal, CONSOL Energy Inc. has closed on its previously announced agreement to sell the Buchanan mine in southwestern Virginia, the US, and certain other metallurgical coal reserves to Coronado IV LLC for total consideration to CONSOL of US$420 million in value, including US$402.8 million cash paid at the closing.
CONSOL previously announced that it was entering into an agreement on 29 February 2016, where it intended to sell the Buchanan mine and certain other coal reserves for US$420 million.
Previously announced, the transaction would include CONSOL Energy's idled Amonate mine in southern West Virginia and southwestern Virginia, its greenfield Russell County coal reserves in southwestern Virginia and its greenfield Pangburn-Shaner-Fallowfield coal reserves in southwestern Pennsylvania. It also includes approximately 400 million short t of proved coal reserves, which includes approximately 88 million short t associated with the Buchanan mine.
The transaction does not include any gas rights, and CONSOL will retain the right to extract and sell gas at the mines and other properties.
The agreement contains customary representations, warranties and covenants, among other provisions, including a customary escrow provision.
CONSOL previously indicated that it expects to use transaction proceeds in order to pay down debt. The transaction is expected to close in 1Q16.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/01042016/consol-energy-completes-buchanan-mine-sale-503/