ANYBODY SEE THIS???
VIRGINIA, Mar 24 (MARKET WIRE) --
SHARPE RESOURCES CORPORATION: (NEX: SHO.H)(OTCBB: SHGPF) Sharpe has
completed letters of intent agreements and deposits to purchase interests
in two separate coal mine properties in Eastern Kentucky for $850,000.
The projects are expected to close in less than 30 days. One of the
projects is located in Pike County, Kentucky and the other is located in
Lawrence County, Kentucky. All of these properties are permitted and
bonded to go immediately into coal production. The properties are fully
equipped to include the necessary mining equipment for both the
underground mine and the surface, strip mine. The underground property
should go into production in April at a projected mine rate of
approximately 30,000 tons per month followed by an additional 25,000 tons
per month for the surface mine for a total monthly production that is
projected to be about 55,000 tons per month, according to Roland M.
Larsen, qualified person.
These properties include excellent growth potential with large acreage
positions and very good coal quality, the Pike County project is capable
of supporting several additional surface and underground mines on the
property. These developments could yield considerable increases in the
production rates on these properties. Additionally, the Company will seek
to acquire additional properties that could serve to accelerate
production growth over the next two years.
Recently Platt's coal outlook has indicated that "the Central Appalachian
coal market is going into 2008 with tight supplies and higher prices due
to heavy demand, declining production and mining difficulties." This
situation is also affected by a marked increase in the second half of
2007 from overseas customers for both metallurgical and steam coal
showing a 38% increase in sales over 2006". Annual Energy outlook has
predicted that US coal exports would continue at high tonnages until some
time in 2010 and 2015. This coal will go to primarily Europe and Canada.
This demand will also tighten supplies for domestic steam coal consumers
translating to higher coal prices and a strong market for produced coal
going forward. NYMEX, Big Sandy and locally posted coal prices range up
to $80-$85/ ton for steam (electrical) generation coal to over $150+ /ton
for metallurgical quality coal and it is hard to find the coal to fill
current orders in many instances.
Sharpe will continue to evaluate and acquire additional coal development
opportunities within the Central Appalachian region over the next 2-3
months.
Sharpe Resources Corporation cautions that the statements made in this
press release and other forward looking statements made on behalf of the
Company may be affected by such other factors including, but not limited
to market volatility, competition, and other risks detailed herein and
from time to time in the Securities and Exchange Commission filings of
the Company.
C.U.S.I.P # 82001L100
TSX Venture Exchange does not accept responsibility for
adequacy or accuracy of this press release.
Contacts:
Sharpe Resources Corporation
Roland Larsen
Qualified person, NI-43-101
