Published:
Silver Butte to Enter Coal Industry
SANDPOINT, Idaho, June 24 /PRNewswire-FirstCall/ -- On June 23, 2008
Silver Butte entered into a Letter of Intent for a share exchange with Blue
Arch Coal Company, aWyoming corporation ("Blue Arch"). Blue Arch Coal Company
is a privately held corporation that currently owns options to acquire four
state coal leases in the Powder River Basin ofWyoming. The leases are
estimated to contain 148.3 million tons of proven sub-bituminous coal
reserves.
Under the terms of the proposed share exchange, at closing, each of the
approximately 220,500,000 then outstanding shares of Blue Ach will be
exchanged for shares of Silver Butte on a one for one basis (i.e. one share of
Silver Butte will be issued in exchange for one share of Blue Arch). Closing
of the transaction is contingent upon completion of Due Diligence by each
corporation and negotiation of a definitive Share Exchange Agreement which
must be approved by the Board of Directors of Silver Butte and Blue Arch and
by the shareholders of Blue Arch holding majority of the outstanding shares of
Blue Arch Common Stock. The Share Exchange Agreement will contain, among other
conditions, a requirement that prior to closing Blue Arch shall have obtained
equity financing in the minimum amount of $3million. After closing of the
transaction it is anticipated that there will be a 1:5 reverse split of the
Silver Butte Common stock and that Silver Butte shall amend its Articles of
Incorporation changing the name of the Corporation to Blue Arch Energy, Inc.
This news release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act. Forward-looking statements are inherently subject to risks and
uncertainties, many of which cannot be predicted with accuracy, and some of
which might not even be anticipated. This news release is neither a prospectus
nor an offer to sell securities or stocks in the company. It is intended for
informational purposes only.
SOURCE Silver Butte Company, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: ,MNG,OIL,OTC,ID-Silver-Butte
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