CONSOL Energy To Sell Buchanan Mine To Coronado For $420 Mln

(RTTNews) - CONSOL Energy Inc. (CNX) Monday announced an agreement for the sale of its Buchanan Mine in southwestern Virginia and certain other metallurgical coal reserves to Coronado IV LLC for total consideration of $420 million, including $398 million cash payable at the closing.

The transaction is being funded by Energy and Minerals Group.

Nicholas DeIuliis, president and chief executive officer of the company said, "The Buchanan Mine fits into Coronado's portfolio as a pure play metallurgical coal producer, and, in the end, this transaction bolsters the strategic position of both companies."

The transaction includes approximately 400 million tons of proved coal reserves which includes approximately 88 million tons associated with the Buchanan Mine. However, does not include any gas rights, and CONSOL will retain the right to extract and sell gas at the mines and other properties.

CONSOL said it expects close in the first quarter of 2016 and to utilize transaction proceeds to pay down debt. Further, CONSOL Energy plans to suspend its regular quarterly dividend.