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Rhino Resource Partners LP Announces Agreement With Royal Energy Resources, Inc. and Yorktown Partners LLC
Rhino Resource Partners LP Announces Agreement With Royal Energy Resources, Inc. and Yorktown Partners LLC.
About this update from Royal Energy Resources Inc
[{"type":"text","content":"\n \n \n Rhino Resource Partners LP Announces Agreement With Royal Energy Resources, Inc. and Yorktown Partners LLC\n \n \nRhino Resource Partners LP Announces Agreement With Royal Energy Resources, Inc. and Yorktown Partners LLC\n \n LEXINGTON, KY--(Marketwired - Sep 30, 2016) - Rhino Resource Partners LP (OTCQB: RHNO) (\"Rhino\" or the \"Partnership\") announced today that it has entered into an equity exchange agreement (the \"Agreement\") with Royal Energy Resources, Inc. (OTCQB: ROYE) (\"Royal\"), Rhino Resource Partners Holdings, LLC (\"Rhino Holdings\"), an entity wholly-owned by certain investment partnerships managed by Yorktown Partners LLC (\"Yorktown\"), and Rhino GP LLC, the general partner of Rhino. \n Investment partnerships managed by Yorktown own substantially all of the outstanding common stock of Armstrong Energy, Inc. (\"Armstrong Energy\"), a coal producing company with mines located in the Illinois Basin in western Kentucky. The Agreement contemplates that prior to closing, Yorktown will contribute its shares of common stock of Armstrong Energy to Rhino Holdings. At the closing, Rhino Holdings will contribute those shares to Rhino in exchange for 10 million newly issued common units of Rhino. The Agreement also contemplates that Rhino GP, currently owned and controlled by Royal, will issue a 50% ownership of Rhino GP to Rhino Holdings in connection with the issuance of Rhino units for the common stock of Armstrong Energy. Closing of the Agreement is conditioned upon (i) the current bondholders of Armstrong Energy agreeing to restructure their bonds and (ii) Rhino refinancing its current revolving credit agreement with funds from an equity investment into Rhino to be arranged by Rhino Holdings. The Agreement is also subject to other standard closing conditions and required approvals. The parties anticipate the Agreement will be consummated on or before December 31, 2016.\n About Rhino Resource Partners LP \n Rhino Resource Partners LP is a diversified energy limited partnership that is focused on coal and energy related assets and activities, including energy infrastructure investments. Rhino produces metallurgical and steam coal in a variety of basins throughout the United States. Additional information regarding Rhino is available on its web site -- RhinoLP.com.\n About Royal Energy Resources, Inc. \n Roya...