No WRONG! It's a matter of completing the deal which will never happen because it's a scheme cooked up by Berkowitz and Zolotas. The big question is, what happened to all that money?
Coal Business
Currently, our coal business operations are limited to coal processing and blending services. There can be no assurance that we will be able to effectively manage our limited operations or expand operations in the future. Our current limited coal operations include a coal preparation plant located in Pike County, Kentucky, USA which was acquired in December 2013. In 2012 we entered into an agreement to acquire certain mine-related assets (including mineral rights, surface rights and mining permits) and the title of land ownership of the Five Mile mine including the Andy Terminal Railroad (the “Five Mile Assets”) in Breathitt County, Kentucky, USA. The payment of the $11 million purchase price was paid during 2013 and 2014 through the December 2, 2013 stipulation of settlement agreement (the “December Settlement Agreement”) between NewLead Holdings Ltd. and Hanover Holdings I, LLC, a New York limited liability company (“Hanover”). As of the date of this annual report, although the purchase price for the Five Mile Assets has been fully paid, the transfer of the Five Mile Assets has yet to occur. Further, according to the Kentucky State mining regulators, upon the successful transfer of the Five Mile Assets, it is a precondition to the transfer of the permits for the replacement of the reclamation bonds for the transfer of the Five Mile Assets. We are currently analyzing our next steps towards the completion of the acquisition of Five Mile Assets. For more information about our coal business, please see “Item 5.-Operating and Financial Review and Prospects-Recent Developments”, “Item 4B.-Business Overview-Coal Business” and “Item 4D.-Properties, Plants and Equipment”.
As of December 31, 2014 and May 12, 2015, our coal business consists of our coal preparation plant, which has entered into various coal processing agreements. However, there can be no assurance that we will be able to effectively manage those operations or expand those limited operations in the future.
