Key Highlights
- Executed agreement to acquire 100% of Pure Energy Coal
- Contains the Westchester Deep Mine with a 1.7 mil measured in-‐place coal resource (NI 43-101 compliant; 2012)
- Located at Davy Quadrangle, Browns Creek District, West Virginia
- Currently producing 4160 tons per month increasing to 20,000 tons within 5 months
- Total cost per ton of $105.46
- Net cash of $290K per mo. at $120/ton increasing to $950K at $153/ton with internal wash plant and load out facility
- Permieng on the property has been expanded significantly
- Additional revenue stream as property contains access point to water supply used by local miners
- $15 million acquisition cost
West Virginia Coal
West Virginia is the nations 2nd largest coal producing state with recoverable coal reserves estimated at more than 51 billion tons in 2016
There are over 280 companies and 456 mines producing more than 99 million tons of coal a year
McDowell County was ranked as the 6th largest surface mine producer and 13th largest underground mine producer having produced a combined 2.69 million tons in 2015
It has 84 operating mines and an estimated 1.6 billion of recoverable coal reserves
West Virginia coal is used extensively by domestic utility companies to produce electricity
Electric power utilities are the largest coal consumers in the nationti with 2/3rd of all coal production being used by utilities or smaller industrial installations to generate electricity and steam
The steel industry is the second largest coal user in the U.S.
About 80 million tons of coal are used each year to make coketi an essential element in the steel-‐making process
About two-‐thirds of a ton of coal is needed to produce a ton of steel
West Virginia has some of the best metallurgical coal found anywhere in the world and it constitutes about 40% of West Virginia’s annual production