XINERGY LTD. ANNOUNCES CLOSING OF THE SALE OF ITS ALABAMA ASSETS
KNOXVILLE, TN, Sept. 8 /CNW/ - Xinergy Ltd. ("Xinergy" or "the Company") announced today the closing of the sale of its wholly owned subsidiary, Xinergy of Alabama, Inc. ("Coal Valley") for $3.1 million in cash, which represents a gain of approximately $1.8 million.
Mr. Jon Nix, CEO of Xinergy, commented, "We came to the conclusion that Coal Valley was not consistent with our long-term strategy and goals, and we felt it would be beneficial to monetize our investment on terms that maximize shareholder value. There are no active mining operations on these properties, so this sale will not affect Xinergy's current production levels nor hinder our plans for growth and expansion."
As stated in the Company's recent Management Discussion & Analysis ("MD&A") dated August 4, 2010, Xinergy had entered into a non-binding letter of intent to sell all of its interest in the Alabama properties, which were held by Coal Valley. Although the Company had permitted the property and controlled the mineral rights at Coal Valley, Xinergy management considered these properties to be outside of its strategic near-term plans.
About Xinergy Ltd.
Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly owned subsidiary, Xinergy Corp. is engaged in coal mining in eastern Kentucky and West Virginia. Currently, Xinergy sells high quality steam coal to electric utilities and industrial companies throughout the southeastern United States. For more information, please visit www.xinergycorp.com.
Information about Forward-looking information
This release contains "forward-looking information" that includes information relating to future events and future financial and operating performance, including management's assessment of Xinergy's future outlook. Forward-looking information should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking information is based on information available at the time it is made and/or management's good faith belief as of that time with respect to future events, and such information is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking information. Important factors that could cause these differences include but are not limited to: the business of the Company may suffer as a result of uncertainty surrounding the acquired assets; the Company may be adversely affected by other economic, business, and/or competitive factors; the worldwide demand for coal; the price of coal; the price of alternative fuel sources; the supply of coal and other competitive factors; the costs to mine and transport coal; the ability to obtain new mining permits; the costs of reclamation of previously mined properties; the risks of expanding coal production; the ability to bring new mines on line on schedule; industry competition; the Company's ability to continue to execute its growth strategies; and general economic conditions. These and other risks are more fully described in the Company's filings with the Canadian Securities Administrators, including its Annual Information Form, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking information, no inference should be drawn that we will make additional updates with respect to those or other forward-looking information.
%SEDAR: 00021880E
For further information: Miranda Smith, 647-427-0208
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