HENDERSON, Nev., Sept. 9 /PRNewswire-FirstCall/ -- Consolidation Services, Inc. ("CNSV"), (BULLETIN BOARD: CNSV) , announced today that Buckhorn Resources, LLC, "Buckhorn" which is 50% owned by CNSV, signed a five year coal mining lease agreement with ICG Hazard, LLC, "ICG", a subsidiary of International Coal Group, Inc. , on approximately 1,765 acres. Buckhorn received $108,000 and approximately another $125,000 is due immediately, which pays surface royalties due on about 144,000 tons of previously mined coal and fee (surface and mineral) royalties on approximately 18,000 tons of previously mined coal from the leased portion of the Buckhorn property. Approximately 334,000 tons of coal have been previously mined on disputed areas, of which Buckhorn has a claim for mineral royalties on about 144,000 tons and a fee claim (surface and mineral) on about 190,000 tons. Buckhorn expects its share of these royalties should be in excess of $1,500,000; however, the exact amount will depend upon the outcome of negotiations with counter claimants.
ICG and Buckhorn resolved their overlapping title claims on approximately 391 acres. Dr. Johnny R. Thomas, CEO of CNSV and Managing Member of Buckhorn, confirms that management will be focused on negotiations with the various counter claimants using this negotiation as a model.
Royalties due from future mining on undisputed areas will be due on the 25th of the month following the mining activity. All royalties due from ongoing coal mining activities from disputed areas will be held in escrow until negotiations or judicial rulings resolve the conflicting title claims. Less than half the leased area has had any coal mining activity.
Dr. Thomas also anticipates issuance of the first coal mining permits on CNSV's, LeeCo property (about 840,000 tons of coal) in the next couple of months, with contract mining expected to commence in late 2009 or early 2010. Management anticipates but cannot guarantee, that coal mining royalty revenues will enable the Company to substantially reduce its debt during the next four or five quarters.
About Consolidation Services, Inc.
CNSV is engaged in the acquisition of land and the mineral rights in eastern Kentucky. The Company is focused on investing in and developing potential energy resources, primarily the ability to generate revenues from which coal exists on or under the Company's properties in eastern Kentucky.
Forward Looking Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and under the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release are forward-looking statements. Without limiting the foregoing, the words "believe," "anticipate," "plan," "expect," "seek," "potential", "estimate" and similar expressions are intended to identify forward-looking statements. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements.
Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Consolidation Services, Inc.
CONTACT: John C. Francis, Vice President/CFO of Consolidation Services,
Inc., +1-702-630-2345, info@consolidationservicesinc.com
