Cliffs Natural Resources To Sell Logan County Coal To Coronado Coal II LLC

http://www.nasdaq.com/article/cliffs-natural-resources-to-sell-logan-county-coal-to-coronado-coal-ii-llc-20141203-00138

(RTTNews.com) - Cliffs Natural Resources Inc. (

) has agreed to sell its Logan County Coal assets in southern West Virginia to Coronado Coal II LLC for $175 million cash and the assumption of certain liabilities. The cash proceeds from the sale are likely to be used for debt repayment.

Cliffs' President and Chief Executive said, "I am very pleased to be able to sell these assets to Coronado Coal, an experienced West Virginia-based coal operator. This transaction is another important step in executing our strategy to transform Cliffs into a stronger, pure-play U.S. iron ore supplier."

Further, the transaction would provide employment opportunities for many of the current Logan County Coal employees to be part of the Coronado Coal team. Cliffs other U.S. coal assets, Oak Grove mine in Alabama and Pinnacle mine in West Virginia, remain unaffected by this transaction. The firm said it would continue to explore sale options for its other coal assets.

The transaction may close by year-end 2014 and Cliffs expects to record a loss on the sale of assets in the range of around $375 million to $425 million on a pre-tax basis in the fourth quarter of 2014.

Deutsche Bank Securities Inc. acted as financial advisor and Hahn Loeser & Parks LLP acted as legal advisor to Cliffs Natural Resources Inc.

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