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UPDATE 1-Royal Coal to buy 80 pct stake in coal loading terminal
December 22, 2010 / 10:40 PM / in 7 years

UPDATE 1-Royal Coal to buy 80 pct stake in coal loading terminal

* To buy stake in eastern Kentucky terminal for $8.3 mln

* Says has option to acquire remaining stake

Dec 22 (Reuters) - Royal Coal Corp RDA.V said it plans to buy an 80 percent stake in a river-based coal loading terminal in eastern Kentucky for about $8.3 million, to move coal efficiently from its surface mines in the region to the market.

The purchase includes the equipment used to operate the river terminal, which has the capacity to load over 100,000 tons per month, the company said in a statement.

Royal Coal, which has three reserves in central-eastern Kentucky, said it has the option to buy the remaining stake for a price to be negotiated with the vendor.

The acquisition is expected to close by Jan. 31.

Shares of the Toronto-based firm closed at 17.5 Canadian cents on Wednesday on the Toronto Venture Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Unnikrishnan Nair)

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