Homeland Energy Group Sells Kendal Colliery for $25.7 Million

Homeland Energy Group Ltd. (TSX:HEG) announced that it has sold the Kendal Colliery to the Joe Singh Group of Companies for $25.7 million.

As quoted in the press release:

Following numerous operational setbacks over the past two years including flooding in the mine, the significant incidence of dykes and sills in the coal seams, the discovery that the underground workings in the E Block had been mined to a more significant extent than had previously been indicated and the difficulties in retaining a mining contractor on a cost effective basis, management of the Company was of the view that positive cash flow from operations would not be achieved in the short or medium term. Rather than incurring further losses, the decision was made to seek a buyer for the property who could more effectively conduct operations as a result of economies of scale.

To view the whole press release, click here.