Vancouver, British Columbia,
Canada-based coal miner East Coal Inc. (East Coal) has announced that it has signed a letter of intent with Aponet Enterprises Ltd. (Aponet) to purchase a 100 percent interest in the Menzhinsky
coking coal mine located in
Ukraine.
To acquire the
coking coal mine, East Coal will pay an initial $250,000 to Aponet and then continue to pay $250,000 per month for six consecutive months starting from October 31 2011 or until earlier execution of a formal acquisition agreement. East Coal will also pay $2 million to Aponet upon the completion of the formal agreement.
East Coal expects that production from the mine will be increased to approximately 500 mt of coal per day in the first months. If completed, this transaction will provide East Coal with a second significant mine in the Donbass district of
Ukraine, along with the Verticalnaya coal mine.