* To buy stake in eastern Kentucky terminal for $8.3 mln
* Says has option to acquire remaining stake
Dec 22 (Reuters) - Royal Coal Corp said it plans to buy an 80 percent stake in a river-based coal loading terminal in eastern Kentucky for about $8.3 million, to move coal efficiently from its surface mines in the region to the market.
The purchase includes the equipment used to operate the river terminal, which has the capacity to load over 100,000 tons per month, the company said in a statement.
Royal Coal, which has three reserves in central-eastern Kentucky, said it has the option to buy the remaining stake for a price to be negotiated with the vendor.
The acquisition is expected to close by Jan. 31.
Shares of the Toronto-based firm closed at 17.5 Canadian cents on Wednesday on the Toronto Venture Exchange.
(Reporting by Gowri Jayakumar in Bangalore; Editing by Unnikrishnan Nair)
((gowri.jayakumar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: gowri.jayakumar.thomsonreuters.com@reuters.net)
Keywords: ROYALCOAL/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Says has option to acquire remaining stake
Dec 22 (Reuters) - Royal Coal Corp said it plans to buy an 80 percent stake in a river-based coal loading terminal in eastern Kentucky for about $8.3 million, to move coal efficiently from its surface mines in the region to the market.
The purchase includes the equipment used to operate the river terminal, which has the capacity to load over 100,000 tons per month, the company said in a statement.
Royal Coal, which has three reserves in central-eastern Kentucky, said it has the option to buy the remaining stake for a price to be negotiated with the vendor.
The acquisition is expected to close by Jan. 31.
Shares of the Toronto-based firm closed at 17.5 Canadian cents on Wednesday on the Toronto Venture Exchange.
(Reporting by Gowri Jayakumar in Bangalore; Editing by Unnikrishnan Nair)
((gowri.jayakumar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: gowri.jayakumar.thomsonreuters.com@reuters.net)
Keywords: ROYALCOAL/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.