Alpha Natural Resources
is acquiring certain coal mining operations in eastern Kentucky from
for about $23 million plus an adjustment for working capital at closing.
Alpha also will assume $8 million in reclamation liabilities. The company will acquire the stock of Diamond May Coal and Progress Land, and the assets of Kentucky May Coal, from Progress Fuels.
The Abingdon, Va.-based company plans to use its existing revolving credit facility to finance the transaction and anticipate the closing by May 1, subject to customary closing conditions.
Over the next two years, Alpha plans to develop a slope and shaft into the underground Elkhorn 2 reserve, with first production expected from the mine in 2008.
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