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Royal Energy Resources to Acquire Coal Assets in Northern Appalachia for $20 Million; Reserves Exceed 150 Million Tons
Royal Energy Resources to Acquire Coal Assets in Northern Appalachia for $20 Million; Reserves Exceed 150 Million Tons.
About this update from Royal Energy Resources Inc
[{"type":"text","content":"\n \n \n Royal Energy Resources to Acquire Coal Assets in Northern Appalachia for $20 Million; Reserves Exceed 150 Million Tons\n \n \nRoyal Energy Resources to Acquire Coal Assets in Northern Appalachia for $20 Million; Reserves Exceed 150 Million Tons\n \n CHARLESTON, SC--(Marketwired - Aug 25, 2015) -  Royal Energy Resources, Inc. (OTCQB: ROYE) today announced that it has signed a Letter Agreement to acquire the assets and infrastructure of two permitted mines in Northern Appalachia, located on the Ohio River in Meigs County, Ohio and Mason County, West Virginia.\n On July 21, 2015, the Company entered into a Letter Agreement with Middle Wilgat LLC and Coal Fields Transports, Inc., affiliates of The Cline Group (collectively, the \"Seller\"), for the purchase of all of the membership units of Gatling LLC, Gatling Ohio LLC, Meigs Point Dock LLC, Big River Mining LLC, Yellow Bush Mining LLC and Broad Run Dock LLC. Together these entities comprise the \"Gatling Mining Complex\" situate on an aggregate of 70,000 net acres adjacent to the Ohio River, within 75 miles of existing and operational coal-fired utilities, with an estimated 20 Million tons of cumulative coal burn per annum.\n The Agreement provides for an aggregate purchase price of $20 Million, $18.5 Million in cash and $1.5 Million payable in the form of a 2% clean coal royalty. The Company has paid a $250,000 deposit and the entire transaction is scheduled to close on or before October 5, 2015.\n The Gatling Mining Complex includes two permitted, room-and-pillar underground mines in both West Virginia and Ohio, a substantial quantity of mining equipment, an operational wash plant, conveyor systems, a coal loading facility on the Ohio River, and a dedicated beltline to the Mountaineer Power Plant of American Electric Power (NYSE: AEP). Based on an appraisal report by Weir International, Inc., the Ohio mine has proven and probable reserves of approximately 121 million tons of coal, and the West Virginia mine 64 million tons of coal, with a Fair Market Value as of March 26, 2014 of $75.35 Million. At peak production in 2009, the Gatling Mining Complex produced approximately 250,000 tons of clean coal monthly and employed approximately 200 miners. The underlying reserves and certain assets are owned by Natural Resource Partners, LP (NYSE:...