The mine is situated in the country’s easterly Lugansk region near EastCoal’s flagship Verticalnaya anthracite project.
The deal was originally announced last April and required the Canadian miner to pay Aponet Enterprises $US2 million cash upon transfer of ownership and 4 million common shares in EastCoal.
Menzhinsky is projected to yield 641,250 tonnes of coal and generate a net cash flow of $38 million in its first five years.
An upcoming report is expected to confirm the operation’s net present value at $316 million.
EastCoal chairman John Byrne said a proposed expansion of the coking coal mine might divert equipment that was originally intended for Verticalnaya.
EastCoal focuses on the Donbass coal basin of Ukraine which has been known for its large coal reserves since the 1700s.
