In the second transaction, effective December 20, 2012, CONSOL Energy agreed to sell its interest in other coal assets, subject to certain conditions, in Alberta, for $24 million. The buyer is Riversdale Resources, headquartered in Sydney, Australia. The primary asset is Grassy Mountain Surface Mine, where CONSOL's share of the recoverable reserves is estimated to be 30 million tons. CONSOL anticipates closing this transaction during the second quarter of 2013.
"These two sales represent a continuation of our successful strategy of pulling value forward and focusing on our near-term opportunity set," commented J. Brett Harvey, CONSOL Energy Chairman and CEO.
The $127 million in cash from these sales, when combined with the previous 2012 asset sales of $224 million, means that CONSOL Energy sold assets in excess of $350 million during the year. None of the assets sold in 2012 generated revenue during the year. The company expects to sell additional non-core assets in 2013.
About CONSOL Energy Inc.CONSOL Energy Inc., the leading diversified fuel producer in the Eastern U.S., is a member of the Standard & Poor's 500 Equity Index and the Fortune 500. It has 12 bituminous coal mining complexes in four states and reports proven and probable coal reserves of 4.5 billion tons. It is also a leading Eastern U.S. gas producer, with proved reserves of 3.5 trillion cubic feet. Additional information about CONSOL Energy can be found at its web site: www.consolenergy.com. About Forbes & Manhattan, Inc. Forbes & Manhattan, Inc. is a leading private merchant bank with a global focus on the resource-based sectors. F&M is headquartered in Toronto, Ontario, Canada with offices, operations and assets across the globe. F&M uses its industry proven technical and financial team, along with its capital, to incubate, finance and manage public and private companies in the junior resource sectors. F&M creates shareholder value by uniting a successful combination of assets, financial backing, technical strength and marketing support throughout the entire corporate lifecycle. With a depth of financial, technical, legal and investor relations expertise in house, F&M is able to advance its group of portfolio companies to unlock shareholder value. F&M has a successful track record of identifying high quality assets and advancing them from discovery through to production. For more information, please visit www.forbesmanhattan.com.