Cousins, a 30-year industry veteran and the managing director of Clear Fork Mining – which Thelon acquired in December – brings to the fold management experience and knowledge of all stages of mine planning, permitting, leasing and everyday operations in the Appalachian region.
"Tony has been an integral part of Thelon's development to date and we are privileged to have the opportunity to continue to work with him as we grow the company's operating and coal reserves in the Appalachian coal basin," Thelon president Jason Walsh said.
Cousins was tapped by the company late last year to be a member of its advisory board.
Thelon also confirmed Monday that it has amended the purchase agreement of Clear Fork Mining, a transaction announced December 20. Under the adjustments, Cousins will take $US1.5 million of the private placement announced in January and Thelon has been granted a 120-day extension on the $1.5 million balance; Cousins now owns 17% of Thelon.
With the option to purchase Clear Fork came the acquisition of the Jellico coal project, which is located on 6350 acres in Campbell and Claiborne counties, Tennessee.
The entire Jellico project encompasses a minimum of 13 million tons of high-quality thermal and metallurgical coal, according to a 2009 report by AR Leamon. As that report was not compliant with NI 43-101 standards, Thelon said last year it would confirm and expand the reserve and file a compliant report.
Jellico has well-established power, logistics and transportation in the area, including mine access roads and a railroad that runs parallel to state highway 90.
Last month, Thelon increased its US portfolio again with the purchase of a privately held, active Tennessee-headquartered producer.
The company purchased 100% of the 30-year-old unnamed company’s outstanding shares for $35 million and will pay $7 million for the same amount in surety bonds. The private company had positive cash flow, so there is no debt to assume.
Thelon will now control the seller’s three permitted strip and auger operations producing 50,000 tons per month, and another four planned for development. It will also take over more than 22Mt of recoverable coal, including 4.5Mt of Blue Gem seam metallurgical coal under lease.
The new assets also include an estimated $24 million worth of operating mining equipment, a wash plant and other support infrastructure.
