Union Energy will receive $16.2m and three million L&L shares at $5.396/share for the coal mine.
The company said that the Weishe mine generates high quality, low sulfur, anthracite coal, and is one of three newly constructed mines owned by Union Energy in Guizhou Province.
The Weishe mine deal is anticipated to add 124,000 tonnes to L&L’s production and $19.6m in revenue by the end of 30 April 2013.
L&L said the mine is expected to be expanded to produce 450,000 tonnes of coal annually over the next few years.
L&L Energy Chairman and CEO Dickson Lee said L&L Energy has been focused on executing its plan for the Guizhou consolidation.
"With the recently established Hong Gou operational office in Guizhou, the government’s approval of our new wholesales license, and now the addition of the Weishe Mine, we are positioning ourselves well to fully execute the two one millions ton wholesale agreements negotiated in the fall of 2011," said Lee
