I would really like to see an update on this,...
as its the ONLY announcement I've seen from this company that implies near term revenues!
Figure Four once upon a time implied that,but most here know the history of that attempt.Hopefully Petrobras can pick up that fumble and start running the ball there.
However,this Coal mining pr issued back in the middle of May implies that WestHawk has an unutilized expertise and capacity for underground mining.
I'd sure like to see them prove that.
Source Marketwire
Date 05/13/2008
Time 05:56:46 AM
Company WEST HAWK DEVELOPMENT CORP.
Title West Hawk and FEV Energy to Acquire Coal Mine and Coalbed Methane Operation
CDNX Symbol: WHD
Press Release
NEWS RELEASE TRANSMITTED BY MARKETWIRE
FOR: West Hawk Development Corp.
TSX VENTURE SYMBOL: WHD
FRANKFURT SYMBOL: H5N
May 13, 2008
West Hawk and FEV Energy to Acquire Coal Mine and Coalbed Methane Operation
DENVER, COLORADO--(Marketwire - May 13, 2008) - West Hawk Development Corp.
("West Hawk") (TSX VENTURE:WHD)(FRANKFURT:H5N) (the "Company") is pleased to
announce that it has entered into a letter of intent with FEV, a private
Denver, Colorado based Energy Company to acquire and develop a coal mine and
coalbed methane gas operation in Oklahoma and Arkansas.
Currently both companies, West Hawk and FEV, are in a due diligence process to
evaluate the best mining and business alternatives for the coal property. As
soon as this process is satisfactorily completed, both companies will start to
develop the coal mine and coal bed methane extraction system. The property has
existing infrastructure with access to rail, paved roads, water, and power on
site. Water transportation is nearby and all permits are in place. The product
has a long history of being used in the North American and International market
and can be taken to market by either rail or water.
The coal resource has produced high quality metallurgical and thermal coal on a
continuous basis since the early 1900's. Farrell-Cooper Mining Company
("Farrell"), a private company based in Oklahoma and Arkansas, has mined the
Hartshorne coal seam with surface mining techniques since the 1940's. The low
volatile, low moisture, 6 to 8% ash, and 1% sulfur product with in excess of
13,000 Btu per pound coal was processed through a preparation and processing
plant and supplied to the high demand export and domestic metallurgical coal
market.
Upon completion of a satisfactory due diligence:
- Both parties will incorporate a new limited liability company (LLC) in which
West Hawk will own one third, and FEV will own two thirds
- West Hawk will manage the new company and manage the coal and coal bed
methane extraction operation(s)
- FEV will manage the gas gathering and gas sales operations
- FEV and its associates are committed to provide project financing to the new
LLC
- West Hawk will commission a CNI Report to provide a potential resource
estimate
Farrell Cooper Mining Company specializes in surface mining and is selling the
property since it will require underground mining techniques. Farrell mined
this property to a highwall and West Hawk will now use underground techniques
to mine the remaining coal seam as an underground resource and extract the gas
in an integrated fashion.
"We are extremely pleased to work with FEV Energy, as the vision of both
companies is very similar in terms of bringing clean energy to the world. They
have an outstanding group of people and both teams compliment each other in
terms of operations and financial capabilities. West Hawk also sees this move
as strategic to our British Columbia, Groundhog project, as the two coals can
compliment each other in the PCI, metallurgical, and gasification market," said
Wm. Mark Hart, President and CEO of West Hawk Development Corp.
"We have been evaluating various companies to develop this underground deposit
as we completed the surface mining portion of the property and we look forward
to a long working relationship with West Hawk and FEV as together these
companies have the operating, technical and financial strength to create
substantial value," said William J. Cooper, President of Farrell Cooper Mining
Company.
This coal can be used in the metallurgical market, the steam market and for
gasification to Coal-to-Liquids, Coal-to-Gas, or Coal-to-Power. West Hawk
proposes to extract gas from the coal seam and associated strata and distribute
to nearby pipelines for distribution to the market. Subject to due diligence,
it appears that the resource may be able to support three separate mining
operations, with a 14 mile long outcrop.
"West Hawk Development has been seeking a financial partner to back its
experienced mining operation team. West Hawk's operational capabilities and
FEV's financial strength have helped the team win this opportunity," said
Richard F. Braun, director at West Hawk.
"The companies were up against some very large players in the bidding process,
but we have won the opportunity and we are very pleased," said Roger A. Baer,
CFO of West Hawk.
"With existing permits, installed infrastructure, control over the gas rights,
and an extremely hungry market for this product, we can bring this product to
market much quicker than the typical operation," stated Dr. Jinsheng Chen,
President of Asian operations for West Hawk.
"The Arkoma coal region has provided energy for 100 years building America,
making steel, and providing a superior fuel for heat and electricity. West Hawk
looks forward to working with our partners to build a world-class clean energy
system on this superb property," stated Dr. Andrew P. Schissler, Executive Vice
President of Engineering, West Hawk.
"Dr. Schissler is leading the due diligence and development team through to
production, at which time, the project will be handed over to the operational
team," stated Gonzalo Torres Macchiavello, President of North America
Operations, West Hawk.
On behalf of the board of directors,
Dr. Wm. Mark Hart, President and Chief Executive Officer
About the Company: West Hawk Development Corp. is focused on providing
valuable, high-demand clean energy products from a variety of sources. Assets
include the Figure Four natural gas property located in the Piceance Basin,
Colorado, being developed under a drilling and development agreement; the
Groundhog coal property located in northwest British Columbia; the Tulita coal
property in the Northwest Territories; and the Ellesmere Island, Nunavut
Territory coal property.
Cautionary Note: This report contains forward looking statements, particularly
those regarding cash flow, capital expenditures, coal quality and investment
plans; being historic in nature, cannot be verified by the Company, do not
comply with modern reporting standards (NI 43-101), and therefore should not be
relied upon. Resource estimates, unless specially noted, are considered
speculative. The Company has filed a National Instrument 51-101 Report on the
Figure Four property. The Company has filed National Instrument 43-101 Reports
for each of the Tulita coal property in the Northwest Territories, the Nunavut
Coal property and the Groundhog Coal property. Any and all other resource or
reserve estimates are historical in nature, and should not be relied upon. By
their nature, forward looking statements involve risk and uncertainties because
they relate to events and depend on factors that will or may occur in the
future. Actual results may vary depending upon exploration activities, industry
production, commodity demand and pricing, currency exchange rates, and, but not
limited to, general economic factors. Cautionary note to U.S. investors: The
U.S. Securities and Exchange Commission specifically prohibits the use of
certain terms, such as "reserves" unless such figures are based upon actual
production or formation tests and can be shown to be economically and legally
producible under existing economic and operating conditions.
- 30 -
CONTACT INFO:
West Hawk Development Corp.
Dr. Wm. Mark Hart
President and Chief Executive Officer
(303) 524-1424
Fax: (303) 524-1285
Website: www.westhawkdevelopment.com
The TSX Venture Exchange has not yet reviewed and does not take responsibility
for the adequacy or accuracy of the content of this news release.
INDUSTRY: Energy and Utilities - Coal, Energy and Utilities - Oil and Gas ,
Manufacturing and Production - Mining and Metals
SUBJECT: TMN - TAKEOVERS/ LETTER of INTENT
