US-based mining company Freepoint Commodities has executed financing and acquisition agreement with Covenant Coal through its subsidiary Commerce Coal in a bid to expand its coal assets.
Through this agreement, the company finances Covenant’s thermal coal mining operations located in Pike County, Kentucky.
Commenting on the deal, Freepoint CEO David A. Messer stated that the agreement demonstrates company’s ability to provide streamlined solutions to commodity producers.
"Freepoint’s merchant platform positions itself at the intersection of physical commodity markets and finance. We provide a one-stop solution to customers like Covenant looking for both finance and off-take services," added Messer.
Meanwhile, Covenant CEO Jerry Tackett noted: "With this transaction, Covenant is in an excellent position to expand the scope of its coal mining operations."