Potential WTN, GCE, CMK coal junior stock RDA is on the move with more positive news
Royal Coal Corp. Announces Advance Payments from Sandstorm Metals & Energy on Royalty Agreement and Coal Purchase Agreement
Toronto, Ontario - January 7, 2011 - Royal Coal Corp. (TSX-V: RDA) ("Royal Coal" or the "Company") announces that, in accordance with the royalty and coal purchase agreements with Sandstorm Metals & Energy Ltd. ("Sandstorm Energy") (TSX-V: SND) previously announced November 26, 2010, Sandstorm Energy has advanced a portion of the agreed upon upfront payments to the Company.
Sandstorm Energy has:
- advanced US$2 million of the US$11 million total upfront coal purchase payment committed to Royal Coal
- in accordance with the coal purchase agreement, the remaining US$9 million will be remitted upon completion of certain funding conditions which is expected by February 2011
- completed the purchase for US$3 million of the 2.7% gross royalty on all of Royal Coal's current assets (until Sandstorm Energy has been paid an aggregate amount of US$4.5 million, and thereafter a 1.35% gross royalty).
About Royal CoalRoyal Coal is a coal exploration and production company, headquartered in Toronto, Ontario, Canada with a regional office in Hazard, Kentucky, U.S.A. whose primary business focus is developing producing surface coal mining operations in the Central Appalachian coal producing region of the United States, which includes parts of West Virginia, Virginia, Kentucky, Ohio, and Tennessee.
For further information contact Tom Griffis, Chairman of Royal Coal, at (416) 861-8775.