Sherritt Plans $946-million Divestment of Coal Assets

Sherritt International Corp. (TSX:S) announced on December 24 that it plans to divest its coal assets to the tune of $946 million. Westmoreland Coal Company (NASDAQ:WLB) and a group led by Altius Minerals Corp. (TSX:ALS) will be acquiring the assets.

Moving forward, Sherritt will focus on its core businesses.

As quoted in the press release

A group led by Altius Minerals Corp., will acquire Sherritt’s entire royalty portfolio and its interest in coal development assets for cash consideration of $481 million, subject to closing adjustments.

Westmoreland Coal Company (“Westmoreland”) will acquire Sherritt’s operating coal assets, currently described as the Prairie and Mountain Operations, for total consideration of $465 million, comprised of $312 million in cash and the assumption of capital leases presently valued at $153 million, subject to closing adjustments.

 Click here to read the full Sherritt International Corp. (TSX:S) press release.