Hallador Energy Co.'s wholly owned subsidiary, Sunrise Coal LLC (Sunrise), completed the purchase of certain underground coal reserves and a coal sales agreement associated with Triad Mining, LLC's (Triad) Freelandville mining complex. Triad is a wholly owned subsidiary of Blackhawk Mining LLC based in Lexington, Kentucky.
The Freelandville complex is located in Sullivan and Knox Counties, Indiana, US. As part of the transaction, Sunrise is purchasing more than 14 million short t of proven and probable leased and owned coal reserves and associated advanced royalties in addition to rights under a coal sales agreement that extends through 2017. In consideration for the sale, Triad will receive US$18.25 million.
All reserves purchased in the transaction are contiguous to the Oaktown 1 mine reserve and will be mined from the Oaktown 1 mine portal. The purchase of the Freelandville reserves grants Sunrise access to tons they already controlled but did not previously include in their reserve base.
Hallador's President and CEO, Brent Bilsland, stated: "This transaction increases our reserve base at our lowest cost mine and creates a solid foundation of sales going forward. We feel this investment ensures the low-cost position of the Oaktown mine and solidifies the employment of our dedicated miners.”
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/23032016/triad-mining-and-sunrise-coal-complete-coal-reserves-sale-449/