NewLead Holdings Amends Kentucky Title and Coal Excavation Rights

NewLead Holdings Ltd. (NASDAQ: NEWL) announced that they have amended title and coal excavation rights in 5,000 acres of land in Kentucky.

As quoted in the press release:

Under the amended agreements, NewLead is not required to now fund the $66 million aggregate acquisition price of the two properties. Instead, NewLead must pay $850,000 per month through May 2013, which payments will be credited against the$66 million aggregate acquisition price. At that time, the remainder of approximately $40 million of the initial aggregate acquisition price will become payable in nine monthly installments, with a payment of approximately $23 million due a year after the last installment is due. NewLead is currently seeking financing for the $66 million aggregate acquisition price. While NewLead has signed a preliminary term sheet with a lending party to enable it to fund this transaction, no assurance can be provided that this or any other party will be able to provide the financing required in the timeline required, or at all.

NewLead’s Chairman and CEO, Michael Zolotas, said:

We continue to develop our commodity arm by hiring experienced professionals to help exploit this opportunity. In addition, by amending the agreements to allow NewLead to extract minerals from the coal mines, we are in a position to leverage these assets and commence supplying coal to our growing customer base.

To view the whole press release, click here