Global Earth Energy (OTC:GLER) announced today it has entered into a joint venture partnership with GFC 2005 LLC, a coal mining concern with offices in Orion, Michigan. The deal involves the mining and sale of 1,000,000 tons of coal per year for the next five years at a per tonnage price of approximately $100.00 per ton. The joint venture will be on a 70/30% split between GFC and GLER respectively. As I write, shares of GLER are up 140% at $0.012 per share on volume of more than 40 million shares.The total gross revenues are worth approximately $500 million over the next five years potentially giving GLER a gross revenue stream of approximately $150 million. Furthermore, GFC has a purchase order in place with Wins International Company Ltd., of South Korea for the purchase of 5 million tons of coal as of January 25, 2011. GFC and GLER have entered into this agreement based on the synergies between the two firms that is based on the financial model created by GLER and LifeCycle international involving asset backed securities involving the LB TIM deal.
Alchemy Engineering Associates, Inc. a Mining & Civil Engineering Consultant in Kentucky has estimated the coal mine has over 5 million tons of coal. The project area is located within the Buzzard Branch watershed, near the mining community of Algoma, in McDowell County, West Virginia. This watershed has been extensively deep and surface-mined, with mining having occurred since the beginning of the 20th century. The primary coal seam(s) mined were the Pocahontas 3 & 4 seams, which were historically used as coking coals.
The coal purchase order in full from Wins International will be posted on the GLER website along with the supporting documentation from Alchemy Engineering associates. Resumes of the GFC management team will also be posted.
For more information on Global Earth Energy, please visit their site: www.globalearthenergy.com.
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