SALT LAKE CITY, June 22 /PRNewswire-FirstCall/ -- America West Resources, Inc. (OTC Bulletin Board: AWSR), a domestic compliant coal producer with mining operations in Central Utah, today announced that it has signed a new coal supply agreement, valued over $75 million, with a major coal-fired power agency responsible for generating electricity sold to utility companies serving multiple municipalities throughout the Western U.S.
The supply agreement provides for compliant thermal coal mined from America West's Horizon Mine in Carbon County, Utah to commence shipping immediately, with follow-on coal trains running through the end of December 2014. In addition, the customer has the right to purchase additional coal production over and above the contracted base quantities. Based on pre-determined pricing per ton, the additional tonnage could yield up to another $46 million in revenue to the Company over the contracted supply period.
"America West is pleased to be providing power users in the Western U.S. with a reliable, low cost supply of energy generated from our clean, compliant coal. We're very proud of our major new customer wins and the tremendous progress we continue to make towards establishing America West as a preferred global source for high quality thermal coal," stated Dan Baker, Chief Executive Officer of America West.
About America West Resources, Inc.
Headquartered in Salt Lake City, Utah, America West Resources is an established domestic coal producer focused on the mining of compliant (low-sulfur) coal and its sale primarily to utility companies and industrial customers in the western U.S., China and Europe. The Company operates the Horizon Mine, which has recoverable compliant coal reserves under lease of approximately 12 million tons. For more information, please visit www.AmericaCoal.com.
This news release contains forward-looking statements Please refer to the Company's Form 10-K and other filings with the United States Securities and Exchange Commission (the "SEC") for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at www.sec.gov. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding current or future mining output, ability to obtain necessary equipment, personnel and permits to mine coal, production capabilities, management's strategy, plans and objectives for future operations, plans and objectives for production, plans and objectives for present and future production, plans and objectives for regulatory approval, and anticipated results, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with coal production, mining in general and in our mines in particular, ability to achieve the coal output anticipated, ability to obtain permits, ability to hire and retain the necessary personnel, as well as other risks detailed in our filings with the SEC. We assume no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
ELITE FINANCIAL COMMUNICATIONS GROUP
Dodi B. Handy, President & CEO (Twitter: dodihandy)
For Media Inquiries: Kathy Addison, VP, Elite Media Group (Twitter: kathyaddison)
407-585-1080 or via email at AWSR@efcg.net
SOURCE America West Resources, Inc.