Business
Advanced Emissions Solutions Announces Sale of Marshall Mine, LLC to Caddo Creek Resources Company, L.L.C.
Elimination of asset retirement obligation strengthens the Company’s balance sheet and provides operational focus GREENWOOD VILLAGE, Colo., Sept. 06, 2022
About this update from Arq, Inc.
[{"type":"text","content":"Elimination of asset retirement obligation strengthens the Company’s balance sheet and provides operational focus\nGREENWOOD VILLAGE, Colo., Sept. 06, 2022 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (NASDAQ: ADES) (the \"Company\" or \"ADES\"), a leader in emissions control solutions for coal-fired power generation, industrial and municipal water purification markets, today announced that it has signed a definitive agreement to sell Marshall Mine LLC, the entity that owns the former lignite mine currently being reclaimed located in Marshall, Texas (“Marshall Mine”), to Caddo Creek Resources Company, L.L.C. (“Caddo Creek”) (the “Transaction”). The Company had previously taken over the Marshall Mine upon entering into its activated carbon supply agreement with Norit Activated Carbon. The Company does not expect any cash proceeds from the Transaction and will pay out a purchase price of $2.4 million from cash balances that are currently restricted. As a result of the Transaction, Caddo Creek will assume Marshall Mine’s assets as well as the asset retirement obligation related to the mine of $4.8 million. Upon completion of the Transaction, the Company expects to record a gain of approximately $2.4 million. Additionally, the elimination of the asset retirement obligation is expected to result in the release of a portion of the Company’s restricted cash balance when the Transaction closes which is expected to occur in the first half of 2023. The closing of the Transaction is subject to certain customary closing conditions including obtaining applicable regulatory approvals. “Although the reclamation work performed at the Marshall Mine has gone extremely well and is under budget, this sale allows us to continue to de-risk our balance sheet and to focus on growing our consumables revenues,” said Greg Marken, CEO of ADES. “The removal of the surety bond associated with the Marshall Mine and the expected release of restricted cash associated with the bond, will further enable us to continue to improve operations at our Red River plant and focus on our recently announced merger with Arq Limited.” About Advanced Emissions Solutions, Inc.Advanced Emissions Solutions, Inc. serves as the holding entity for a family of companies that provide emissions solutions to customers in the power generation and other industries. ADA brings t...