America West Resources Signs $6.6 Million Coal Supply Contract with California Co-Gen Plant
09 9월 2008 - 11:17PM
PR Newswire (US)
Customer Maintains Right to Purchase an Additional $4.8 Million in
Coal in 2009 at Contracted Pricing SALT LAKE CITY, Sept. 9
/PRNewswire-FirstCall/ -- America West Resources, Inc. (OTC:AWSR)
(BULLETIN BOARD: AWSR) , a domestic coal producer with mining
operations in Central Utah, today announced that the Company has
signed a Coal Supply Agreement with a major U.S. energy company
providing for the delivery of bituminous coal mined from America
West's Horizon Coal Mine for use in a co-generation power plant
based in California. The $6.6 million deal, which expires on
December 31, 2009, provides for contracted minimum pricing per ton
based on an average caloric value of 11.500 Btus/lb. Pursuant to
coal quality considerations and a standard market index, the price
per ton may be subject to upward or downward adjustment. The
customer also retains the right to purchase additional coal tonnage
in 2009 that could yield up to another $4.75 million in sales to
America West at the prevailing contracted price per ton. "Presuming
we are successful at optimizing our production capabilities through
2009 at Horizon, this new contract, in combination with the
contract we announced in July, could represent more than $32
million in revenues to our Company over the next 16 months," stated
Dan Baker, Chief Executive Officer of America West Resources.
Continuing, he noted, "This will go a long way in helping our
Company to achieve our near term top and bottom line objectives,
while generating strong positive cash flow that can be leveraged to
begin development of the metallurgical coal assets on our new
Columbia leasehold." About America West Resources, Inc.
Headquartered in Salt Lake City, Utah, America West Resources, Inc.
is an established domestic coal producer focused on the mining of
clean and compliant (low-sulfur) coal and its sale primarily to
U.S. utility companies for use in generating electricity. Since
2003, the Company has extracted over 1.3 million tons of coal from
its owned and operated Horizon Coal Mine based in Central Utah. For
more information, please visit http://www.americacoal.com/ .
Forward-Looking Statements This news release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Please refer to the
Company's Form 10-KSB and other filings with the United States
Securities and Exchange Commission (the "SEC") for additional
information regarding risks and uncertainties, including, but not
limited to, the risk factors listed from time to time in such SEC
reports. Copies of these filings are available through the SEC's
electronic data gathering analysis and retrieval system (EDGAR) at
http://www.sec.gov/ . FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
ELITE FINANCIAL COMMUNICATIONS GROUP Dodi B. Handy, President &
CEO For Media Inquiries: Tiffany Korkis or John Morrison, Managing
Directors of Elite Media Group 407-585-1080 or via email at
DATASOURCE: America West Resources, Inc. CONTACT: Tiffany Korkis or
John Morrison, Managing Directors of Elite Media Group,
+1-407-585-1080, Web site: http://www.americacoal.com/
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