Hidalgo Mining (HMIT) Negotiates Coal Contract with the Federal Electric Commission. Proposed Contract to Generate 20-30K Tons in Coal Purchases Equaling $11-16.5M In Additional Monthly Revenues.
6:00a ET June 1, 2007 (Business Wire)
Hidalgo Mining International (PINK SHEETS: HMIT - News), an innovative coal mining company headquartered in New York with coal properties located in Northern Mexico, announced today that it has retained Callado & Associates, a Law Firm in Mexico City, to represent HMIT in direct negotiations with the Federal Electric Commission (FEC) for purposes of entering into a coal purchasing contract to vend coal to both of its Northern Mexico power plants. Estimated figures from the proposed contract will equal 20-30K tons of coal purchases resulting in $16.5M in possible monthly revenues.
Concluding a contract with the FEC will provide HMIT with its second large-scale contract since its introduction of mining to the general public. Callado & Associates will provide legal counsel and further guidance in the overall attempted closure of the aforementioned contract and will remain on retainer to continually provide its counsel for future contracts and legal matters.
Distribution to the Northern Mexico power plants under the control of the FEC will provide logistical simplicity as they are located within close proximity from the Hidalgo mining site. Additionally, local Mexican rail lines will provide easy access and expedited delivery resulting in lowered expense of transportation and increased profit margins for overall coal transactions between HMIT and FECOM.
"Entering into negotiations with the Federal Electric Commission is not only a tremendous landmark within our sales program, but more importantly an honor as very few organizations are able to label themselves as potential business associates of a commission of its caliber. Retaining Callado & Associates was the most beneficial choice in seeking legal counsel for this particular negotiation as well as to provide ongoing representation for all upcoming contracts and legal matters. We will provide updates to our shareholders as to the progress of the proposed contracts as the upcoming events take place, stated Jeff Bootes, CEO of Hidalgo Mining International.
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