Royal Energy Resources, Inc. entered into letter agreement to acquire Gatling LLC, Gatling Ohio LLC and Meigs Point Dock LLC from Middle Wilgat LLC.
August 25, 2015
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Royal Energy Resources, Inc. (OTCPK:ROYE) entered into letter agreement to acquire Gatling LLC, Gatling Ohio LLC and Meigs Point Dock LLC from Middle Wilgat LLC on July 21, 2015. In related transaction, Royal Energy Resources, Inc. entered into letter agreement to acquire Big River Mining LLC, Yellow Bush Mining LLC and Broad Run Dock LLC from Coal Fields Transports, Inc. The agreement provides for an aggregate purchase price of $20 million, $18.5 million in cash and $1.5 million payable in the form of a 2% clean coal royalty. Under the terms of the agreement, Royal Energy Resources paid a $0.25 million deposit. The acquisition is expected to close on or before October 5, 2015.
As of November 25, 2015, Jet Fuel LLC entered into definitive agreement to acquire Gatling LLC, Gatling Ohio LLC and Meigs Point Dock LLC from Middle Wilgat LLC for $20 million. The consideration involves $14 million cash and $6 million in the form of a senior secured promissory note. No consent, waiver, agreement, approval, permit or authorization of, or declaration, filing, notice or registration to or with, or assignment by, any governmental entity is required. The transaction is scheduled to close on or before December 20, 2015, but in no event later than December 31, 2015. David C. Stratton of Stratton Law Firm, P.S.C. and Robert J. Mottern of Davis Gillett Mottern & Sims LLC acted as legal advisor for Royal Energy Resources, Inc. Jennifer Fahey of Bailey & Glasser, LLP acted as legal advisor for Wilgat LLC.
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.