According to the letter of intent with AMS Development and Colt Resource, Liberty will pay $20,000 within five days of the date of the agreement, which will give Liberty 45 days to complete its due diligence, which is well underway.
If the Company elects to proceed to development at the end of the due diligence period, it will pay an additional $60,000 to purchase the rights to the existing mining permit.
The company has agreed to enter into lease and royalty agreements pursuant and will pay a royalty of $5.00 per ton.
Liberty Coal Energy president Ed Morrow said they are happy to have access to this advanced project.
"We believe the project can be in production in approximately 90 days after ground breaking," said Morrow.
"We project initiation of development in spring 2012."
