SOURCE: Liberty Coal Energy Corp.

Liberty Coal Energy Corp.

February 07, 2012 09:01 ET

Liberty Coal Energy Announces Coal Mine Acquisition in Kentucky

CARSON CITY, NV--(Marketwire - Feb 7, 2012) - Liberty Coal Energy (OTCBB: LBTG) (the "Company" "Liberty Coal" or "Liberty") is pleased to announce that on February 1, 2012, the Company entered into a letter of intent for the acquisition of private mineral leasehold rights to a certain coal mining property in Owsley County, Kentucky with AMS Development LLC. and Colt Resources, Inc.

In consideration for the Letter of intent, Liberty will pay $20,000 within 5 days of the date of the Agreement, which will give Liberty 45 days to complete its due diligence, which is well underway. If the Company elects to proceed to development at the end of the due diligence period, it will pay an additional $60,000 to purchase the rights to the existing mining permit.

The Owsley property comprises approx. 1000 acres of fee surface and coal rights, and has a mine plan in place and a phase 1 permit technically approved by the Kentucky Department of Natural Resources. The permit may be activated by posting the required reclamation bonds and liability insurance.

The surface mineable recoverable coal resource on the project is in excess of 2.6 million short tons. The coal mineable by augur methods is in excess of 950,000 short tons. An additional 2.2 million short tons are recoverable by deep mining, however underground coal is not part of the existing permit.

As part of the Agreement, the Company has agreed to enter into lease and royalty agreements with AMS Development LLC and Colt Resources, Inc., pursuant to which AMS and Colt would receive a royalty of $5.00 per ton. Performance and minimum royalty provisions will apply.

Liberty's President, Ed Morrow, said, "We are pleased to have access to this advanced project. We believe the project can be in production in approximately 90 days after ground breaking. We project initiation of development in Spring 2012."

About Liberty Coal Energy Corp.

Liberty Coal Energy is a resource development and production company with projects in the Powder River Basin in north eastern Wyoming and now in eastern Kentucky. The Company is building the foundation for success in the United States' most active coal mining regions. Liberty Coal Energy is dedicated to the acquisition, development and production of coal in North America. The Company is committed to creating value for its shareholders by maintaining the highest environmental standards to produce clean coal for the nation's energy needs. Please visit the Company's website www.libertycoal.com for additional information.

Forward-Looking Statements

Forward-Looking Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. The statements by our officers, and other statements regarding optimism related to the business, expanding exploration and development activities and other statements in this press release are forward-looking statements. Such statements are based on current expectations, estimates and projections about the Company's business. Actual results could vary materially from the description contained herein due to many risk factors that affect the industry the Company operates in and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

Contact Information

  • For further information contact:
    Samantha White
    888-399-3989
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