GLER Jointly Owned Company Receives $360 Million, 3-Year Contract From Large International Coal
Global Earth Energy, Inc. (OTCBB: GLER) (OTCQB: GLER) (PINKSHEETS: GLER) and Modern Coal, LLC, a Texas major contract mining company, announced today that through Global Earth Natural Resources, L.L.C., their jointly-owned limited liability company, that they have received a contract from a large international coal group to purchase coal from Global Earth Natural Resources, L.L.C.'s soon-to-be-acquired Samuel Coal property. The total value of the contract is estimated to be $360 million over a 36-month period.
"Global Earth Natural Resources, L.L.C. is elated to solidify its first contract to import coal to a major international coal company that positions the company to generate positive cash flows over the long-term," said Brad Lamar, president of Modern Coal. "I'm excited to confirm that we have received an initial deposit of $28 Million in the form of a letter of credit (LOC) from a foreign bank located in New York City. After a customary site visit and confirmation of our ability to fulfill the contract in full, the LOC will be increased to 100,000 tons of coal per month for 36 months at a price of $103.00 per ton."
Samuel Coal's Kentucky-based mines are historically prolific producers of coal and have attracted strong interest from major coal suppliers from around the world. Global Earth Natural Resources, L.L.C. is under agreement to purchase all of Samuel Coal's operations with the closing date of August 11, 2011. Modern Coal completed its initial cash down payment to Samuel Coal on June 22nd. The Samuel Coal operations are located on approximately 5,000 acres near Hindman in the eastern part of Kentucky (http://mapq.st/ePX71T). For additional information on the property, please visit the GLER website at www.globalearthenergy.com.