LEXINGTON, Ky., Sept. 26,
2022 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ:
METC) ("Ramaco" or the "Company") announced that it has closed the
previously announced acquisition of 100% of the equity interests of
Maben Coal LLC ("Maben"), an
entity owned by Appleton Coal LLC, through the Company's subsidiary
Ramaco Development, LLC (the "Acquisition"). Maben Coal LLC holds
approximately 33 million tons of minable coal on over 28,000 leased
acres located in Wyoming County
and Raleigh County, West
Virginia.
The purchase price of $30 million
consisted of: (i) $9 million to be
paid in cash at closing and (ii) $21
million paid from the proceeds of a two-year secured note
payable to Investec Bank, PLC (the "Lender"). The Acquisition is
anticipated to be accretive to the Company over the next 12
months.
The Maben property contains
various areas of high quality low vol met coal in the Sewell,
Pocahontas 3, Pocahontas 4, and Pocahontas 6 (and all seams between the Sewell
and Pocahontas 6) seams of coal.
The Company expects that the 1.5 million tons of coal contained in
the Sewell seam will be mined beginning in the first quarter of
2023 by the surface and high wall mining methods.
The Company will consider the deep mine development of the 31
million tons of coal contained in the Pocahontas 3 and the Pocahontas 4 seams at some future point. Such
future development would involve adding approximately 1 million
tons per year at full production with construction of a new
preparation plant and loadout.
Maben has existing mining
permits issued by the West Virginia Department of Environmental
Protection which authorize mining by both surface and highwall
mining methods, as well by underground operations. The property
also has issued permits covering an existing haul road, as well as
an active refuse disposal area together with a preparation plant
and unit train loadout, neither of which has yet been
constructed.
The Sewell seam mine development will begin immediately after
the closing. Initial production is expected in the first quarter of
2023 with an anticipated annual yield of 250,000 tons in 2023,
remaining at that level through 2028. The Company estimates that
the near-term Maben mining
operations will have cash mine costs in the $80 per ton range, plus additional trucking costs
to our Knox Creek preparation plant.
The Acquisition cost and capital expenditures related to mine
development and equipment are expected to be approximately
$15 million, with the majority of
that spend in 2022.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements contained in this press release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical fact contained in this press release,
including statements as to future results of operations and
financial position, revenue and other metrics planned products and
services, business strategy and plans, objectives of management,
market size and growth opportunities, competitive position and
technological and market trends, are forward-looking
statements. These forward-looking statements represent
Ramaco's expectations or beliefs concerning guidance, future
events, anticipated revenue, future demand and production levels,
macroeconomic trends, the development of ongoing projects, costs
and expectations regarding operating results, and it is possible
that the results described in this press 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. These factors include, without limitation, risks
related to the impact of the COVID-19 global pandemic, unexpected
delays in our current mine development activities, failure of our
sales commitment counterparties to perform, increased government
regulation of coal in the United
States or internationally, the decline of demand for coal in
export markets and underperformance of the railroads, the expected
benefits of the Acquisition to the Company's shareholders, and the
anticipated benefits and impacts of the Acquisition. 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 Ramaco's filings
with the Securities and Exchange Commission ("SEC"), including its
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The
risk factors and other factors noted in Ramaco's SEC filings could
cause its actual results to differ materially from those contained
in any forward-looking statement.
About Ramaco Resources, Inc.
Ramaco Resources, Inc. is an operator and developer of
high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia and southwestern Pennsylvania. Its executive offices are in
Lexington, Kentucky, with
operational offices in Charleston, West
Virginia and Sheridan,
Wyoming. The Company currently has three active mining
complexes in Central Appalachia
and one mine not yet in production near Sheridan, Wyoming. Contiguous to the
Wyoming mine it operates a
research and pilot facility related to the production of advanced
carbon products and materials from coal. In connection with these
activities, it holds a body of roughly 50 intellectual property
patents, pending applications, exclusive licensing agreements and
various trademarks. For more information about us, please visit our
website at www.ramacoresources.com.
Point of Contact:
INVESTOR RELATIONS: info@ramacocoal.com or 859-244-7455
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SOURCE Ramaco Resources, Inc.