Based on the report by Southern Cross Equities of 30 November...

Based on the report by Southern Cross Equities of 30 November 2010 on the White Energy Web Site under investor.
White Energy will pay $486m for Cascade Coal mostly in issuing shares at min $3.50. That is the equilivant if $2.80/t for 173.7Mt resource at Mt Penny but see below.

" We believe that the current resource for Mt
Penny covers only a small part of the tenement and will grow over time. Initial estimates by Cascade Coal open cut mine suggest a resource target of c.500Mt, which implies a
price closer to $1.00/t."....says Southern Cross Equities.

With the average Australian coal company tading at $2.60/t the deal may be fine for the White Energy Shareholders.

http://www.whiteenergyco.com/investor/analyst-coverage/growing-diversified-coal-compa.php