SOURCE: InvestmentPitch

December 21, 2010 17:32 ET

Royal Coal (RDA - TSX.V) Signs Letter of Intent to Acquire Coal Property in Kentucky -- Video News Alert Posted on

VANCOUVER, BC--(Marketwire - December 21, 2010) - Royal Coal Corp. (TSX-V: RDA) ("Royal Coal" or the "Company") announced the signing of a Letter of Intent to acquire a group of eight properties, one of which is already permitted, that management considers to have a significant high quality thermal coal deposit located in Eastern Kentucky ("the Property"). Production is expected to commence under the existing permit in the second quarter of 2011.'s video news alert discusses this project. If the link is unavailable, please visit, and enter "Royal Coal" in the search bar.

The Property consists of approximately 14,000 acres with the majority being surface mineable. The Company has commenced a drill program in order to produce a resource estimate compliant with NI43-101 standards. The Property is privately owned and the total purchase price is US$6,000,000 payable on closing and a royalty capped at US$9,000,000.

Tom Griffis, Chairman of Royal Coal, commented "This property will be an excellent addition to our portfolio and is in line with our growth strategy aimed at securing additional significant open pit reserves with long term production."

The Company has provided a non-refundable deposit of US$100,000 for a 45-day option to complete final due diligence and enter a definitive purchase agreement. Closing of this acquisition is expected by February 28, 2011 and is subject to Royal Coal completing financing arrangements.

About Royal Coal

Royal Coal is a coal exploration and production company, headquartered in Toronto, Ontario, Canada with a regional office in Hazard, Kentucky, U.S.A. whose primary business focus is developing producing surface coal mining operations in the Central Appalachian coal producing region of the United States, which includes parts of West Virginia, Virginia, Kentucky, Ohio, and Tennessee.

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Source: InvestmentPitch via Thomson Reuters ONE


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