American Resources Corp. has closed on the purchase of a majority of the assets of Perry County Coal LLC from Cambrian Holding Co. Inc., which entered into Chapter 11 bankruptcy protection on June 16. The assets were acquired free and clear of all liens and American Resources assumed no liabilities other than $9,614,000 in reclamation bonds and other non-material contractual liabilities, according to the company.
The company also negotiated to receive cash consideration at closing of $250,000 in addition to payments of the next two payroll cycles of the Perry County operations, which equates to approximately $1.5 million. The payroll obligation will be repaid to the lender, an affiliate of one of the other purchasers of the Cambrian assets, at the end of 12 months in addition to a 4% annual interest rate, according to the company.
“This acquisition is a significant step for the company as it expands our presence in the global infrastructure market,” Chairman and CEO of American Resources Mark Jensen said. “The assets of Perry County Resources fit extremely well within our current platform, both geographically and strategically. We’re confident that our efficient, low-cost operating structure will enable us to improve performance and enhance profitability, which will set these assets up for long-term success and provide the world with a high-quality resource for infrastructure development, while also providing long-standing stable employment for the hard-working men and women at these operations.”
American Resources said it will work with current personnel to integrate it into American Resources’ platform.
Prior to closing the acquisition, the complex consisted of three active mines — two underground mines and one surface mine — with access to more than 110 million tons of carbon deposits consisting primarily of PCI, high-quality semi-soft coking and industrial stoker carbon. The Perry County assets also included the Davidson Branch Preparation Plant, capable of processing 1,300 tons of carbon per hour, more than 300,000 tons of on-site carbon storage, and batch weight rail loadout with access to the CSX Railroad.
Perry County was in the process of extending a belt line from the preparation plant to the course refuse impoundment. The company said it is immediately implementing a plan to get this project completed and operational.