“Our new three-year financing agreement provides us the financial stability and flexibility to grow the partnership as we look to capitalize on the current strong market conditions, with a strategic focus on our expansion in the international met coal markets,” said Rick Boone, president and CEO of Rhino’s general partner. “We look forward to working with Colbeck, our new financing partner, to increase the value of our partnership for our unitholders.
“Our new financing partner, Colbeck, coupled with the continued support of our sponsor, Royal Energy Resources, as well as our financial partner Yorktown Partners, positions us to be a strong, long-term competitor in the worldwide coal markets.”
Last month, Rhino sold its interests and related assets and liabilities in Sands Hill Mining to an unnamed third party in exchange for a future override royalty for any mineral sold, excluding coal, from Sands Hill after the closing date. The third party assumed the surface coal mining operations as well as the limestone operations at Sands Hill. The partnership maintained ownership of an Ohio River barge loading facility that was previously owned and operated by the Sands Hill. Rhino believes this asset can provide significant value through the sale or potential lease of the facility. The partnership expects to recognize a gain from the divestiture of Sands Hill since the third party will assume approximately $4 million in reclamation obligations associated with this operation.