Sunrise Coal, the wholly-owned subsidiary of Hallador Energy, has completed the acquisition of certain underground coal reserves and a coal sales agreement with Triad Mining’s Freelandville mining complex in the US.
Triad is a wholly-owned subsidiary of Blackhawk Mining in Lexington, Kentucky.
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The mining complex is located in Sullivan and Knox Counties, Indiana.
Under the terms of the transaction, Sunrise will purchase more than 14 million tonnes of proven and probable leased and owned coal reserves.
The company will also acquire associated advanced royalties and rights under a coal sales agreement that extends through 2017.
Triad is set to receive $18.25m from the sale.
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By GlobalDataHallador Energy president and CEO Brent Bilsland said: "This transaction increases our reserve base at our lowest cost mine and creates a solid foundation of sales going forward.
"We feel this investment ensures the low cost position of the Oaktown mine and solidifies the employment of our dedicated miners."
All reserves that are purchased are contiguous to the Oaktown 1 Mine reserve, and will be mined from its portal.
By purchasing the Freelandville reserves Sunrise will get access to tonnes that the company already controls.
Hallador produces coal in the Illinois Basin for the electric power generation industry.
