Navigate this market better. Subscribe for FREE stock alerts and information.

Tuesday, July 15, 2014

Russia's Severstal sells U.S.-based PBS Coals to Corsa Coal, (CVE: CSO.V)

Russia's Severstal has agreed to sell Pennsylvania-based metallurgical coal producer PBS Coals to Canada's Corsa Coal for an enterprise value of $140 million, the Russian company said on Tuesday.Corsa Coal operates U.S.-based coal mines. Its Wilson Creek metallurgical coal operations are also based in Pennsylvania, while the Kopper Glo thermal coal operations are based in Tennessee."For Severstal with its current asset portfolio, PBS Coals is a business which is not operationally linked to the company's steel plants in Russia and the U.S.," the company said in a statement.Severstal will receive $60 million in cash, it said in a statement. Corsa Coal has also agreed to assume reclamation and water treatment liabilities from PBS Coals for $60 million.

Corsa Coal Corp. (Corsa) is engaged in mining, processing and selling of metallurgical and thermal coal, as well as actively exploring, acquiring and developing resource properties. Shares of CSO traded higher by 3.85% or $0.005/share to $0.14. In the past year, the shares have traded as low as $0.10 and as high as $0.20. On average, 81564 shares of CSO.V exchange hands on a given day and today's volume is recorded at 2000.