Ram River Coal Corp., a private Ontario company created by F&M to purchase the coal assets, acquired the Ram River and Scurry Ram coal properties for $105 million ($102.5 million payable to CONSOL Energy). The Ram River coal property has a coal resource of approximately 380 million tons and estimated washed coal product of approximately 75 million tons.
In the second transaction, CONSOL Energy agreed to sell its interest in other coal assets, subject to certain conditions, in Alberta, for $24 million. The buyer is Riversdale Resources, headquartered in Sydney, Australia. The primary asset is Grassy Mountain Surface mine, where CONSOL’s share of the recoverable reserves is estimated to be 30 million tons. CONSOL anticipates closing this transaction during the second quarter of 2013.