North American Gem (TSX VENTURE: NAG) said July 27 that it has executed an asset purchase agreement with Keener Ridge Coals Inc. (KRC) of West Virginia.
Under the agreement, North American Gem will transfer to KRC its interests in certain coal leases and mining permits located in Kentucky. KRC will assume the immediate obligations and liabilities associated with the permits and leases. For all coal sold under Kentucky Department for Natural Resources mine permit #861-0519 (the Swan Pond mine), North American Gem will receive an override royalty of $1.50 per ton, but only after KRC has recouped the funds it had to spend to address the immediate obligations and liabilities associated with the permits and leases being transferred.
Under the agreement, KRC is also obligated to satisfy any claims made by Kentucky Mining Partners LLC (KMP) against North American Gem. North American Gem had reported in previous disclosure documents that KMP had filed a lawsuit in March 2011 in the U.S. District Court for the Eastern District of Kentucky. As a result of this agreement, North American gem no longer has any direct mining operations in Kentucky.
West Virginia Secretary of State corporate records show that the President of KRC is L. Nicholas Stevens and the Secretary of Jamie Stevens, both of Bethesda, Md. U.S. Office of Surface Mining data shows that L. Nicholas Stevens owns 100% of the company.There are no mines currently listed with the U.S. Mine Safety and Health Administration under KRC.
North American Gem also reported that it has executed a mutual release and termination agreement with certain landholders regarding various coal leases within West Virginia. Under the agreement, the company will no longer have any obligations or hold any interests in coal leases located within West Virginia.
North American Gem is a Junior Exploration Company based in Western Canada.