Royal Energy Resources, Inc. completed the acquisition of Rhino GP LLC from Wexford Capital LP.
March 17, 2016
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Royal Energy Resources, Inc. signed a binding term sheet agreement to acquire Rhino GP LLC from Wexford Capital LP for $4.5 million on January 7, 2016. In a related transaction, Royal Energy Resources, Inc. signed a binding term sheet agreement to acquire 40% stake in Rhino Resource Partners LP from Wexford. The parties have agreed to negotiate definitive agreements no later than January 15, 2016. As on January 21, 2016, Royal Energy Resources, Inc. has agreed to purchase Rhino GP, LLC, and 9.45 subordinated units of Rhino from two holders thereof, for aggregate consideration of $1 million. Upon completion Royal Energy plan to replace the directors of Rhino GP affiliated with Wexford with its directors. The transaction is subject to all governmental, regulatory or third party consents. Eleazer Klein of Schulte Roth & Zabel LLP acted as legal advisor to Wexford Capital while Robert J. Mottern of Davis Gillett Mottern & Sims, LLC acted as legal advisor to Royal Energy Resources, Inc.
Royal Energy Resources, Inc. completed the acquisition of Rhino GP LLC from Wexford Capital LP on March 17, 2016.
Royal Energy Resources, Inc. is an energy company, which focuses on coal and energy related assets and activities, including energy infrastructure investments. The Company has a geographically diverse asset base with coal reserves located in Central Appalachia, Northern Appalachia, the Illinois Basin and the Western Bituminous region. The Company's segments consist of Central Appalachia, which includes surface and underground mines located in Eastern Kentucky and Southern West Virginia; Northern Appalachia, which includes surface and underground mines located in Ohio; Rhino Western, which includes an underground mine located in the Western Bituminous region in Utah; Illinois Basin, which includes an underground mine in western Kentucky, and Other, which includes its ancillary businesses, and oil and natural gas investments. The Company produces and markets coal from surface and underground mines in Kentucky, West Virginia, Ohio and Utah.