James River Coal to acquire reserves

    James River Coal Co. is acquiring nearly 20 million tons of central Appalachian coal reserves from Cheyenne Resources Inc.
    Richmond-based James River said Monday that it will pay $40 million for the reserves and permits, including $24 million in cash and $16 million in either cash or newly issued common stock of the company.
    The deal includes about 10.2 million tons of proven and probable surface reserves and 3.6 million tons of proven and probable underground reserves, plus additional surface resources.
    James River’s board and Vicco, Ky.-based Cheyenne Resources’ board have approved the deal. It remains subject to closing conditions.