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Thursday, March 23, 2023

Ramaco (NASDAQ: METC) Announces Acquisition of Ramaco Coal

Ramaco Resources, Inc. (NASDAQ: METC) confirmed the acquisition of 100% of the equity interests of Ramaco Coal, LLC (Ramaco Coal). Ramaco Coal is an entity owned by an investment fund controlled by Yorktown Partners, LLC, and several members of the Company’s management.

Ramaco Coal is mainly comprised of landholding and coal royalty-producing businesses, with fee ownership of about 42 million tonnes of metallurgical coal reserves. The Company now leases the vast bulk of Ramaco Coal’s holdings. The company’s central Appalachian coal mining operations will benefit financially from the acquisition of Ramaco Coal’s property and royalty interests.

Transaction Overview

The payment for the purchase includes an initial payment of $5 million which is scheduled at execution of the deal. It also includes an aggregate deferred acquisition price of $60 million, comprised of $20 million, to be rewarded during the remainder of 2022 in $5 million ratable quarterly installments, and $40 million, to be compensated during 2023 in $10 million ratable quarterly installments.

Furthermore, the Special Committee of Independent Directors of the Board of Directors of the firm discussed and authorized the purchase. The acquisition is contingent upon execution conditions, including obtaining certain authorizations. Moreover, it is not confirmed yet when the closing conditions will be fulfilled or whether the purchase will be terminated at all.

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