American Resources Corporation, a U.S.-based mining company, announced it has entered into an agreement to acquire all the assets of coal producer Synergy Coal, LLC located in Wyoming County, West Virginia.
The acquisition includes all coal mining permits, including the associated reclamation bonds, governmental approvals, a coal processing facility, a rail loadout, over one thousand acres of mineral and surface ownership, and all other assets owned by Synergy Coal.
American Resources will pay approximately $16 million to acquire the assets from the seller in a substantially all-stock transaction at $9 per share, and these assets will be transferred, owned, and operated by a newly-formed, wholly-owned subsidiary of American Resources Corporation called Wyoming County Coal LLC.
This deal provides American Resources several immediate and long-term benefits to the company. Consistent with its plan to raise additional equity in the near term for future growth, the company plans to begin development and expansion of the hub over the next 18 months with a goal of ramping up production from the complex starting in 2020