LEXINGTON, Ky., March 29, 2017 (GLOBE NEWSWIRE) -- RAMACO Resources, Inc. (NASDAQ:METC) (“Ramaco”) announced today that it has entered into various agreements acquiring, through its subsidiary RAMACO Resources Land Holdings, LLC, approximately 14,762 acres of coal properties in Tazewell and Buchanan Counties, Virginia and McDowell County, West Virginia, from Jewell Ridge Coal Corporation (“Jewell Ridge”), an indirect subsidiary of The Brink’s Company. As part of the transaction, Ramaco acquired several coal leaseholds adjacent to its Knox Creek operations.
Among the assets acquired, Ramaco became the sublessor of Revelation Energy, LLC (“Revelation”), which now operates several underground coal mines formerly owned by a subsidiary of SunCoke Energy, Inc. (“SunCoke”), and which still supply coal to SunCoke’s nearby Jewell Coke Plant. However, Ramaco also acquired significant properties that are not subleased to Revelation in close proximity to Ramaco’s Knox Creek preparation plant and Norfolk Southern loadout, which may be developed in the future.
In addition to receiving royalty income from the acquired properties, Ramaco will immediately begin planning development of those portions of the properties not currently subleased to Revelation. Ramaco’s management estimates that the acquisition will yield approximately 10 million mineable tons of metallurgical coal once exploration and reserve analysis efforts are completed. Ramaco intends to enter into additional subleases with neighboring coal operators as well as develop its own mid- and low-volatile metallurgical coal mines. Ramaco will also explore the potential for re-mining two existing coal refuse areas which could contain saleable metallurgical-quality material which was a by-product of processing coal prior to the implementation of more modern coal processing technology.
Michael Bauersachs, Ramaco’s President and Chief Executive Officer, noted that “Ramaco’s strong balance sheet was the key driver in completing this transaction. We were able to provide proper assurance to both Jewell Ridge and our new lessors of our ability to perform in the future, which was critical given our posture as a relatively new coal producer. This transaction meets our disciplined criteria of acquiring metallurgical coal reserves near existing operations at a low cost of entry.”
As consideration for the transaction, Ramaco paid $125,000, a portion of which is recoupable from future production, and agreed to pay an overriding royalty to Jewell Ridge on production from properties not already subleased to Revelation.
ABOUT RAMACO RESOURCES, INC.
Ramaco Resources, Inc. (NASDAQ:METC) is an operator and developer of high-quality, low-cost metallurgical coal in central and southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. For more information about us, please visit our website at www.ramacoresources.com.
Forward Looking Statements
Certain statements contained in this news release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Ramaco’s expectations or beliefs concerning future events, and it is possible that the results described in this news release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ramaco’s control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Ramaco does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Ramaco to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements found in our filings with the SEC. The risk factors and other factors noted in its SEC filings could cause our actual results to differ materially from those contained in any forward-looking statement.
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