08:55 AM EST, 02/11/2025 (MT Newswires) -- Maxim Power ( MXGFF ) on Tuesday said Valory Resources is exercising its right to acquire Summit Coal, a Maxim subsidiary, for $10.2 million in cash and $4 million in shares.

The two companies have until Feb. 18 to seal the deal and closing is expected in the first half of this year.

Maxim will receive net cash proceeds of $8 million, as Summit will be sold with $2.2 million of restricted cash. Maxim will also receive a 3% royalty on any raw coal volume produced from the coal leases currently owned by Summit, including any volumes from Summit's Mine 14 project, if and when production starts.

The proceeds will be used for general corporate purposes, Maxim said.

Valory will also construct a coal processing facility at H.R. Milner site, a property owned by another Maxim subsidiary, Milner Powe.