The Cumberland operations include primarily underground coal mines in Southwestern Virginia and Eastern Kentucky. The acquisition includes an estimated 416 million tons of contiguous coal reserves, a preparation plant in Kentucky served by the CSX railroad and a preparation plant in Virginia served by the Norfolk Southern railroad. Of the estimated reserves, Massey believes more than half (216 million tons) have metallurgical coal qualities. Including the acquired Cumberland reserves, Massey now has an estimated total reserve base of 2.9 billion tons, of which approximately 1.3 billion tons are of metallurgical quality.
Massey Energy completes acquisition of Cumberland Resources Corporation
Richmond, Virginia-based Massey Energy Company, the largest coal company in Central Appalachia, Monday announced that it has completed its acquisition of Cumberland Resources Corporation and its affiliated companies for a purchase price of $640 million in cash, subject to working capital adjustments, and 6,519,034 shares of Massey common stock. The number of shares issued was calculated by dividing $320 million by the average closing price of Massey common stock for the 20 trading days ending on April 16, 2010. Cumberland was one of the largest privately held coal producers in the United States with 2009 produced coal revenue of $550 million generated from the production and sale of 7.8 million tons of high quality Central Appalachian coal. Massey acquired Cumberland free of debt.
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