The 50:50 joint venture was approved by both boards on Friday and is subject to regulatory approvals.

The companies pointed out the economic viability of the projects was uncertain and was contingent upon coal pricing and mining conditions that could affect project economics.

Sharpe Resources develops coal bed methane, coal and shale gas projects primarily in Central Appalachia. Its initial focus has been West Virginia.

Royal Standard Minerals is exploring and developing gold and polymetallic properties in Nevada.