Nerox Energy Corporation to Merge with Diamond Coal Company; Parties Sign Letter of Intent
IRVINE, Calif.--(BUSINESS WIRE)--Dec. 8, 1997--Nerox Energy Corporation (OTCBB:NROX) announced today that it has signed a letter of intent to merge with privately held Diamond Coal Company of Hazleton, PA.
Frederick Crack of Diamond Coal stated, "The merger of Diamond and Nerox provides a strengthened vehicle that can move forward on our expansion of operations to satisfy the increased demand for low cost, clean burning coal." "This merger provides the shareholders of Nerox the advantages of Diamond's current cash flow and profits, credit facilities and assets along with the enormous upside potential of Nerox's coal interests in Alaska," commented Jack Utter, President and CEO of Nerox.
The proposed merger is subject to the results of a financial, commercial and due diligence review by both parties, subject to final approval by both boards and subject to negotiation of mutually satisfactory documentation. Diamond Coal is a coal mining and processing company engaged in the production of Anthracite coal in various size ranges and specifications. It has been successful by marketing to the energy market and as supplier for the carbon filtration media business. It operates on 144 acres and has obtained all required permits to expand onto 1,000 contiguous acres of property.
Nerox Energy Corporation is an emerging growth, fully integrated energy company with interests in oil & natural gas, coal and power plant development. The company's current primary focus is targeted on the development and marketing of the largest accessible high grade bituminous coal reserves in Alaska. The company's Jonesville Coal Mine is strategically located, offering ready access to both the Pacific Rim and domestic markets.
Financial statements in the press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. CONTACT: Nerox Energy Corp.
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