Mercuria Energy Group, through its wholly owned subsidiary Mercuria Energy Group Holdings, has replaced the prior primary senior lender to US-based coal producer Bowie Resources and has provided Bowie with additional sources of funding.
Other subsidiaries of the company have also acquired warrants in Bowie and are providing marketing and risk management services focused on bringing Bowie significant opportunities to optimize its current and future sales.
This financing transaction comes after the re-start of longwall operations at the Bowie No. 2 Mine located in Delta County in the US state of Colorado in June, concluding nearly three years of new development.
From 2000 through 2007, Bowie produced an average of five million tons per year of super compliance (12,000 Btu – 0.5% sulfur) bituminous coal.
The company’s current recoverable reserve base is estimated at 40 million tons and it has a new drilling program underway to further define and quantify additional potential reserves.