Sharpe is Evaluating the Opportunity to Acquire One of Two Permitted Coal Mine Properties in Kentucky and West Virginia
12 February 2008 - 1:00AM
Marketwired
HEATHSVILLE, VIRGINIA (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
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