Xinergy Ltd. Commences Mining Operations at Greenbrier Metallurgical Reserves
Toronto Stock Exchange: XRG
(All Amounts in $US unless otherwise stated)
KNOXVILLE, TN, Dec. 15, 2011 /PRNewswire/ - South Fork Coal Company, LLC, a wholly owned subsidiary of Xinergy Ltd. (TSX:XRG and XRG.WT) ("Xinergy" or the "Company"), today announced that it has received requisite approvals and has commenced production on a portion of its Sewell seam mid-volatility metallurgical coal reserves located in Greenbrier County, West Virginia.
In keeping with prior guidance, the Company intends to initially surface mine 10,000-20,000 tons per month with shipments anticipated to commence in early 2012, after which production is expected to increase to 50,000-60,000 tons by late 2012. The Company estimates the project will add over 100 jobs to the region by the end of 2012.
"The opening of our Greenbrier operations marks the beginning of a long-anticipated transformation to our production profile", stated Jon Nix, Xinergy's Chairman and CEO. "We are very pleased to have commenced operations at Greenbrier on schedule, and are committed to continuing the optimization of our asset portfolio towards maximizing value for our shareholders."
About Xinergy Ltd.
Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly owned subsidiary Xinergy Corp. and its subsidiaries, is engaged in coal mining in eastern Kentucky, West Virginia and Virginia. Currently, Xinergy sells high quality coal to electric utilities and industrial companies throughout the south-eastern United States. For more information, please visit www.xinergycorp.com.
This release contains "forward-looking information" that includes information relating to future events and future financial and operating performance, including management's assessment of Xinergy's future outlook. Forward-looking information should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking information is based on information available at the time it is made and/or management's good faith belief as of that time with respect to future events, and such information is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking information. Important factors that could cause these differences include but are not limited to: the ability to negotiate and executive a definitive purchase agreement for the transaction; the ability to obtain any necessary third party approvals required for the transaction; conditions to the closing of the transaction may not be satisfied; the transaction may involve unexpected costs, unexpected liabilities or unexpected delays; the business of the Company may suffer as a result of uncertainty surrounding the transaction; the Company may be adversely affected by other economic, business, and/or competitive factors; changes in contracted sales, the business of the Company may suffer as a result of uncertainty surrounding the coal market; the Company may be adversely affected by other economic, business, and/or competitive factors; the worldwide demand for coal; the price of coal; the price of alternative fuel sources; the supply of coal and other competitive factors; the costs to mine and transport coal; the ability to obtain new mining permits; the costs of reclamation of previously mined properties; the risks of expanding coal production; the ability to bring new mines on line on schedule; industry competition; the Company's ability to continue to execute its growth strategies; and general economic conditions. These and other risks are more fully described in the Company's filings with the Canadian Securities Administrators, including its Annual Information Form for the year ended December 31, 2010, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking information, no inference should be drawn that we will make additional updates with respect to those or other forward-looking information.
SOURCE Xinergy Ltd.