Westmoreland Coal Co. through its Coal Valley Resources Inc. subsidiary, has entered into an agreement with Athabasca Minerals Inc. that will result in the production of aggregate from Westmoreland’s Obed Mountain Mine site.
Key highlights of the agreement include Athabasca purchasing the Obed rail transloading facility and royalty payments to Westmoreland for all gravel, sand and frac sand produced from the Obed Mountain Mine site. The deal is expected to close by the fourth quarter of 2015 and is subject to standard due diligence, as well as Athabasca obtaining consent from the provincial government to transfer the applicable government leases.
“We are pleased with the cooperative nature in which the parties concluded this arrangement and look forward to working alongside Athabasca on the Obed property,” said John Schadan, Westmoreland’s president of Canada operations “This deal provides Westmoreland with a fair market price for the transloading facility as well as a long term royalty revenue stream. We are pleased with the cooperative nature in which the parties concluded this arrangement and look forward to working alongside Athabasca on the Obed property.”
Westmoreland Coal Co. is one of the oldest independent coal companies in the United States.