East Energy Corp acquires Alberta coal property

East Energy Corp (EEC-V) is acquiring 100% of the Hinton coal property in the foothills of central Alberta, about 306 km west of Edmonton.

The 2,784-hectare property is classified as a category four land-use areathe most favorable designation for resource development in Alberta, the company says. The area is already home to several operating coal mines.

Under the deal, East Energy will pay C$1 million for the bituminous low-sulphur coal property in addition to a 5% net profits royalty on any future coal sales.

The thermal coal is suitable for the export market, East Energy says in a prepared statement.

Currently the propertywhich is open pittable–hosts a measured and indicated resource of 106.76 million tonnes of thermal coal and an inferred resource of 8.7 million tonnes.

The resources were calculated after drilling 87 holes and a total of 7,067 metres or 23,185 feet.

The Hinton project is part of the coalspur formation and is accessible via Alberta’s Highway 40 and from a network of secondary roads.

It is also conveniently situated near Alberta’s rail network, with links to Vancouver’s Westshore Terminals and the Port of Prince Rupert.

The Canadian junior closed at 84 a share, down 4 on a trading volume of 1.56 million shares.

East Energy has a 52-week trading range of 25-97 with 33.7 million shares outstanding.

Apart from North America, East Energy is also active in China.

A year ago it reported that the inferred tonnage at its Jiangcang metallurgical coal project in China’s Qinghai province, had grown by 80%.

That project has an inferred resource of 311.5 million tonnes and it is suitable for surface mining, the company says.

East Energy’s 12.74% share of the inferred resource is 39.6 million tonnes of metallurgical coal.