Rhino Resource Partners Announces Sale and Assignment of Mining Assets
Rhino Resource Partners (NYSE: RNO) announced today that it has closed on an agreement to sell and assign certain non-core mining assets and related liabilities located in the Phelps, KY area of Rhino's Tug River mining complex for $20,000,000. The mining assets include leasehold interests and permits to surface and mineral interests that include steam coal reserves and non-reserve coal deposits. Additionally, the sales agreement includes the potential for additional payments of approximately $8,750,000 dependent upon the future issuance of certain permits and the commencement of mining activities by the purchaser.
Rhino believes the sale of these assets will allow the Partnership to concentrate more resources on its internal development projects that are focused on producing metallurgical coal and pulverized coal injection product. The transaction also transfers certain liabilities related to the assets sold that the Partnership believes will positively impact future cash flows, while also supplying an immediate inflow of cash that Rhino can utilize in its current operations. Since Rhino had limited mining operations on the assets that were sold, the Partnership believes the sale of these assets will not have a negative impact on its future financial results. Rhino expects to record a gain in relation to this transaction.
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