Ramaco Resources Acquire Ramaco Coal from Yorktown Partners

Ramaco Resources announced the closing of its previously announced acquisition of the entirety of equity interests of Ramaco Coal, a Yorktown Partners-owned entity, and part of the company's management, through the company's subsidiary, Ramaco Development.

Ramaco Coal's current profit-raking assets include landholding and coal royalty-producing subsidiaries, which include fee ownership of an estimated 42 million tons of metallurgical coal reserves.

The Acquisition will allow the company to bypass the ongoing minimum royalty and production royalty expenses for the lifetime of production from the acquired reserves. It will provide substantial near and long-term financial benefits, making sure that the company remains among the lowest-cost producers of metallurgical coal in the U.S. for the near future.

Although the royalty savings by themselves support the financial requisites of the acquisition, Ramaco Coal also owns Ramaco Carbon whose assets include the 500 million ton permitted Brook Mine near Sheridan, Wyoming, the adjoining Carbon Advanced Materials research center, and a wide body of intellectual property (IP) and exclusive licensing arrangements in the field of advancing commercial carbon products and materials, using coal as a feedstock.

This IP has primarily been developed in multi-year research partnerships with two of the U.S. Department of Energy National Laboratories, The National Energy Technology Laboratory (NETL) and the Oak Ridge National Laboratory.

Also working with NETL, Ramaco Carbon has been involved in ongoing multi-year mineral analysis and core drilling assessment at the Brook Mine in Wyoming. 

Randall Atkins, Chairman and Chief Executive Officer, Ramaco, noted that "The acquisition of Ramaco Coal represents a recombination of all of the original assets of Ramaco, LLC, before its metallurgical coal operations were spun off in 2016 to form Ramaco Resources, Inc. During private ownership Ramaco Coal, was able to develop not only its metallurgical coal reserve assets, but also embark on a unique path to develop long term alternative uses of coal in its operations in Wyoming.”