The acquisition is valued at $21.5m (A$20.4m) and including mine permits, established infrastructure as well as equipment at the existing mine.
White energy will additionally offer a $200,000 option fee as part of the acquisition and will also be required to replace its present security bonds for $7.5m on the closure of the transaction.
The coal mine purchased by White Energy contains specialty low-ash coal, which has buyers from niche markets, reported Proactive Investors Australia.
The company owns the proprietary Binderless Coal Briquetting (BCB) technology to-be implemented at the mine.
BCB technology is a mechanical process that dehydrates low value, high moisture coals and converts it into a higher value and denser product for use as normal coal.
The company had previously examined coal fines from a Central Appalachia mine at its Cessnock Production Plant and demonstrated positive results.
