America West Resources Signs $200 Million Coal Supply Agreement With China-Based Energy Group
America West Resources Signs $200 Million Coal Supply Agreement With China-Based Energy Group
Apr. 29, 2010 (PR Newswire) --
SALT LAKE CITY, April 29 /PRNewswire-FirstCall/ -- America West Resources, Inc. (OTC Bulletin Board: AWSR), a domestic coal producer with mining operations in Central Utah, today announced that it has signed a Master Coal Purchase and Sale Agreement with a leading China-based energy group, providing for the Company to ship compliant thermal coal mined from its Horizon Mine in Carbon County, Utah to customers in China.
Based on predetermined contract pricing, the four-year agreement is valued between $47 million and $51 million per year. Earlier this week, America West announced that it has leased a coal storage and export terminal at a seaport based in the northwestern region of the U.S. in anticipation of supplying coal to China-based power companies and other industrial users of thermal coal in the Asian markets. Pursuant to this new agreement, the Company expects to commence rail shipments of coal to the newly leased export terminal immediately with subsequent shipments to China expected to begin in June.
"We are very pleased that global demand for our compliant coal has been increasingly robust. In view of the number of new coal supply contracts we have signed or are currently negotiating, America West is working diligently towards re-establishing mining operations in two pillar sections at Horizon, with a goal of expanding to three sections by the end of this year and significantly increasing production," stated Dan Baker, America West's CEO.
About America West Resources, Inc.
Headquartered in Salt Lake City, Utah, America West Resources is an established domestic coal producer focused on the mining of compliant (low-sulfur) coal and its sale primarily to U.S. utility companies for use in generating electricity. The Company operates the Horizon Mine, which has recoverable compliant coal reserves under lease of approximately 19 million tons. For more information, please visit www.AmericaCoal.com.
Forward-Looking Statements
This news release contains forward-looking statements. Please refer to the Company's Form 10-K and other filings with the United States Securities and Exchange Commission (the "SEC") for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at www.sec.gov. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding current or future mining output, ability to obtain necessary equipment, personnel and permits to mine coal, production capabilities, management's strategy, plans and objectives for future operations, plans and objectives for production, plans and objectives for present and future production, plans and objectives for regulatory approval, and anticipated results, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with coal production, mining in general and in our mines in particular, ability to achieve the coal output anticipated, ability to obtain permits, ability to hire and retain the necessary personnel, as well as other risks detailed in our filings with the SEC. We assume no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
ELITE FINANCIAL COMMUNICATIONS GROUP
Dodi B. Handy, President & CEO (Twitter: dodihandy)
For Media Inquiries: Kathy Addison, VP, Elite Media Group (Twitter: kathyaddison)
407-585-1080 or via email at AWSR@efcg.net
SOURCE America West Resources, Inc.
Source: PR Newswire (April 29, 2010 - 8:30 AM EDT)
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