“The sale of our CAPP division will allow us to dedicate all of our corporate resources to the metallurgical coal market where we believe we can achieve the highest rates of return on investment,” said George Dethlefsen, CEO, Corsa Coal. “Corsa’s focus going forward is to aggressively increase its metallurgical coal production, maximize value added services activity, and continue to grow our metallurgical sales and trading platform.”
Industrial Minerals Group will assume a certain amount of debt, leases and future costs, including end of mine closure costs, estimated in the aggregate by Corsa to be approximately $8 million. Last year, the CAPP division generated revenues of $46.4 million and had $20.2 million of negative EBITDA, including a $20 million asset impairment. It sold 539,000 tons of thermal coal and 135,000 tons of high vol metallurgical coal.
Corsa is essentially selling its Kopper Glo Mining subsidiary to Industrial Minerals Group and the transaction is expected to be completed by March 9.
The principals for the Industrial Minerals Group include Hunter Hobson, the president of the CAPP division, and Keith Dyke, former president of the CAPP division, and they received financing from entities controlled by a member of the Robertson family, who controls the general partner of Quintana Energy Partners. Quintana currently controls approximately 41% of Corsa’s shares.