Thelon Capital Ltd. (CVE:THC) reports signing lease agreement with a private contractor to mine a second 600-acre section of its Jellico coal project.
The press release is quoted as saying:
It is scheduled to start production in calendar 2012. This mine site is projected to produce an average of 20,000 tons per month for approximately 7-10 years. Under the terms of the lease, Thelon Capital Ltd. will receive the greater of $7 per ton royalty or ~9% of gross sales price of the Coal. Thermal Coal is currently selling for $90 per ton and Blue Gem Coal is currently selling for $185 per ton.