August 14, 2009 / 10:23 PM / 9 years ago

UPDATE 1-Phoenix Coal posts loss; to sell surface mining assets

* Q2 loss/shr $0.30

* Revenue falls 19 pct

* To sell surface mining assets for about $30 mln

Aug 14 (Reuters) - Mining company Phoenix Coal Inc PHC.TO posted a quarterly loss and agreed to sell its surface mining assets for about $30 million.

Phoenix, which has been exploring strategic alternatives since July, said the assets are located primarily in Muhlenberg County, Kentucky, and will be sold to a privately owned, Ohio-based coal producer.

Phoenix said the acquirer will pay $5.7 million in cash at closing and will assume all debt.

The company expects to have a cash balance of about $23.7 million, upon closing the deal.

For the second quarter, the company posted a net loss of $44.9 million, or 30 cents a share.

Revenue fell 19 percent to $17.3 million.

Shares of the company closed at 38 Canadian cents Friday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Anil D’Silva)

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