Thelon Capital Ltd. (CVE:THC) reports that it has arranged a $25 million Royalty Stream Debt Facility with Waterton Global Value L.P., Toronto.
The press release is quoted as saying:
Thelon would also like to announce it has amended the terms of the purchase agreements with Clear Fork Mining as well as with the Target. Thelon has received all the necessary extensions to complete the acquisitions.
Target Acquisition Highlights:
- The group is based in Tennessee and has mining sites in Tennessee and Kentucky
- Highly respected group in coal mining and reclamation
- Produces and sells currently to a local utility and broader industry in general
- Producing approximately 50,000 tons/m from three permitted strip and auger mines with four additional mines planned
- Resources include over 25.6 million tons of recoverable coal, including 4.5 million tons of Blue Gem Seam specialty coal leases which include 12.32 million ton 43-101 compliant Resource (the balance of 9.68 million tons is non NI 43-101 compliant)
- Eight years permitted life of mine
- Over 100 local employees
- Includes an estimated US$24 million of operating mining equipment, wash plant and load out facility
- No debt and cash flow positive for last three fiscal years
- Current management and staff will stay in place, providing continuity to operations and bringing over 30 years experience in Appalachian coal production and sales
The Financing is subject only to the completion of a $20 million equity raise, and certain other standard debt financing conditions.
Thelon’s President and CEO, Jason Walsh says:
“We are very excited to have the opportunity to work with Waterton on this project and to have them as financial partners.”