Royal Energy Resources is planning to buy assets and infrastructure of two-permitted Northern Appalachia mines - Middle Wilgat and Coal Fields Transports affiliates of The Cline Group.
Royal Energy Resources is planning to buy assets and infrastructure of two-permitted Northern Appalachia mines – Middle Wilgat and Coal Fields Transports affiliates of The Cline Group.
The mines are located in Ohio River in Meigs County, Ohio and Mason County, West Virginia.
The transaction is valued at $20m, which is payable in $18.5m in cash and $1.5m payable in the form of a 2% clean coal royalty.
The West Virginia mine 64 million tons of coal and the Ohio mine has reserves of approximately 121 million tons of coal, and with a Fair Market Value as of March 26, 2014 of $75.35m.
Royal Energy Resources chief operating officer Ian Ganzer said: "We are extremely pleased to be participating in the acquisition of this premiere low-cost coal mining facility.
"The long and successful operating history of the principals of Jet, along with their industry-leading safety and environmental records, will add substantial value to the operations."