From August 30, White Energy has 30 days to enter into formal documentation and complete the purchase of all the capital stock of the company, Mountainside Coal.

The acquisition of Mountainside Coal remains subject to the completion of due diligence.

As previously announced the consideration payable has been reduced and is expected to be approximately $US20 million inclusive of all infrastructure, plants, equipment and permits.

It already accounts for a previous option fee of $200,000 and a further $500,000 option fee.

White Energy said minor adjustments might be made at settlement.

Mountainside Coal is a family-run coal mining business that operates three coal mines in Kentucky and holds leases for around 15 coal areas in Kentucky and Tennessee, four of which are license permitted.

White Energy said it planned to increase Mountainside’s 400,000 ton per annum production, with a focus on the specialty low-ash coal that it sells “to niche markets at an attractive premium”

The Australia-based company also added that it was in active discussions with third parties in relation to a joint venture in Mountainside.

“The acquisition of Mountainside Coal will be a significant milestone for White Energy and will represent an attractive revenue generating asset for the company, while at the same time providing an opportunity to showcase the BCB technology in the key market of the United States,” White Energy managing director Brian Flannery said.

White Energy is the exclusive worldwide licensee of the binderless coal briquetting technology, a mechanical process that upgrades high-moisture, low-value sub-bituminous and lignite coals and more recently coal fines through a process of dehydration and compaction.