NewLead Holdings (NEWL) Scores $64M Coal Contract

January 24, 2013 8:36 AM EST
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NewLead Holdings Ltd. (NASDAQ: NEWL) today announced that the Company has signed an agreement to supply 720,000 metric tons of thermal coal to a third party buyer. The contract is expected to generate approximately $64.0 million in revenue over a 12-month period.

The contract provides for the sale of 60,000 metric tons of coal per month (720,000 metric tons annually) for the 12 months beginning February 4, 2013. All tonnage is subject to a variation of 10%. The price was established based on the prevailing market price for coal at the time the contract was entered into. The agreement is subject to satisfactory completion of a trial shipment of approximately 60,000 metric tons, expected to be completed in the first quarter of 2013.

Michael Zolotas, Chairman, President and Chief Executive Officer of NewLead, stated, "We have secured an additional contract to supply thermal coal to a third party creditworthy counterparty. This agreement further expands our commodities business."

Michael Zolotas continued, "NewLead has the option to transport the coal. We are currently in discussion with a number of financial institutions to secure financing for fleet expansion to fulfill the transportation needs of our commodities arm."

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