Englewood, CO – January 23, 2014 – On December 24, 2013, Westmoreland Coal Company (NasdaqGM: WLB) announced that it had entered into an agreement to acquire the Prairie and Mountain coal mining operations of Sherritt International Corporation (“Sherritt”). These operations include seven producing thermal coal mines in the Canadian provinces of Alberta and Saskatchewan, a 50% interest in an activated carbon plant and a Char production facility. The acquisition of Prairie and Mountain is expected to be completed by the end of the first quarter of 2014.
Once completed, the acquisition of Prairie and Mountain will be a transformational event for Westmoreland, and will more than double the size of the company’s current business. The acquisition will significantly increase the proven and probable coal reserves, and unproven coal resources, of the post-acquisition combined company. On a pro forma basis, the combined company will have proven and probable coal reserves of approximately 1.2 billion tons. In addition, Westmoreland’s management believes that the post-acquisition combined company will control approximately 2.0 billion additional tons of coal resources that cannot yet be classified as proven or probable pursuant to applicable industry standards and SEC guidance, and that these reserves and resources will support current production levels for more than 25 years.
About Westmoreland Coal Company
Westmoreland Coal Company is the oldest independent coal company in the United States. The Company’s coal operations include sub-bituminous coal mining in the Powder River Basin in Montana and Wyoming, and lignite mining operations in Montana, North Dakota and Texas. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. For more information, visit www.westmoreland.com.
Cautionary Note Regarding Forward-Looking Statements and Canadian Information
This release may contain “forward-looking statements.” Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. These statements involve known and unknown risks, which may cause our actual results to differ materially from results expressed or implied by the forward looking statements. These risks include factors such as the uncertainty of negotiations to result in an agreement or a completed transaction, the uncertain nature of the expected benefits from the actual or expected acquisition, the uncertain nature of the announced acquisition, the ability to complete such transactions, risks associated with the integration of acquired assets, risks associated with the our industry or the economy generally, and other such matters discussed in the “Risk Factors” section of reports filed with the SEC. The forward-looking statements in this release speak only as of the date of this release. Although we may from time to time voluntarily update our prior forward looking statements, we disclaim any commitment to do so except as required by securities laws.
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Contact: Kevin Paprzycki (855) 922-6463