Sharpe is Evaluating the Opportunity to Acquire One of Two Permitted Coal Mine Properties in Kentucky and West Virginia
Posted on: Monday, 11 February 2008, 09:00 CST
SHARPE RESOUCES CORPORATION: (NEX BOARD: SHO.H)(OTCBB: SHGPF) Sharpe is currently working with owners/operators and their agents of two separate permitted coal mine properties in Kentucky and West Virginia. The project in Kentucky is in production and the West Virginia property is permitted to go into production. Sharpe's immediate objective is to acquire either a producing or near term (permitted) development property in either Eastern Kentucky or West Virginia as part of an effort to capitalize on the currently "hot export" and attractive domestic coal markets for the Central Appalachian region. This region has excellent infrastructure for mining and transportation of the coal to the market.
Recently Platts coal outlook has indicated that "the Central Appalachian coal market is going into 2008 with tight supplies and higher prices due to heavy demand, declining production and mining difficulties. This situation is also affected by a marked increase in the second half of 2007 from overseas customers for both metallurgical and steam coal showing a 38% increase in sales over 2006". Annual Energy outlook has predicted that US coal exports would continue at high tonnages until some time in 2010 and 2015. This coal will go to primarily Europe and Canada. This demand will also tighten supplies for domestic steam coal consumers translating to higher coal prices and a strong market for produced coal going forward.
Sharpe's objective is to get involved in this market with a near term acquisition as a means to participate in this very attractive Eastern United States coal market. The objective is to get involved in a project that has the potential to grow into a 40,000 to 50,000 ton per month production level. Coal prices for low sulfur, high btu steam coal reportedly from some of the operators to be in the range of $65 to more than $70 per ton fob mine.
According to Roland M. Larsen, CEO, "now is the time to get involved in the coal business in this region." Sharpe currently owns the minerals to more than 17,000 acres of coal lands in West Virginia.
Sharpe Resources Corporation cautions that the statements made in this press release and other forward looking statements made on behalf of the Company may be affected by such other factors including, but not limited to market volatility, competition, and other risks detailed herein and from time to time in the Securities and Exchange Commission filings of the Company.
C.U.S.I.P # 82001L100
The TSX Venture Exchange does not accept responsibility for adequacy or accuracy of this press release.
Contacts: Sharpe Resources Corporation Roland Larsen Qualified person, NI-43-101 (804) 580-8107 (804) 580-4132 (FAX) Website: sharpe-resources.com
SOURCE: Sharpe Resources Corporation
Source: MARKET WIRE
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