The purchase price is expected to be funded through a combination of cash consideration of approximately $74m plus the assumption of approximately $118m in certain liabilities.
The transaction includes approximately 118 million tons of coal reserves as of Dec. 31 enough for 20 years of production.
Additionally, substantially all of Kemmerer’s projected production for 2012-16 is committed and priced under existing sales contracts.
Over the past five years, Kemmerer has produced, on average, 4.7 million tons of sub-bituminous coal for sale to the adjacent Naughton power station, as well as various industrial customers.
The transaction is expected to close by January 31 of this year, subject to certain customary conditions and approvals.
