Royal Coal Corp. Retires $6.4 Million Royalty
31.03.2011 | Marketwire
TORONTO, ONTARIO -- (Marketwire) -- 03/31/11 -- Royal Coal Corp. (TSX VENTURE: RDA) (FRANKFURT: RLC) ('Royal Coal' or the 'Company') announces that it has retired its previously reported obligation to pay a US$2.00/ton royalty to Juno Special Situations Corporation ('Juno'), which royalty had a remaining aggregate amount payable of approximately US$6.4 million (the 'Royalty Retirement Amount'). As a result, the future amount owing under this royalty was reduced to zero.Juno used the full amount of the royalty payment to repay an arm's length lender in an amount equal to the Royalty Retirement Amount. Juno originally borrowed from the third party lender in September 2009 on the Company's behalf in order to provide Royal Coal with the financing required by it to acquire and put into production the Company's Big Branch Mine located in eastern Kentucky, U.S.A.
'With $48.5 million in new capital realized through our recently completed special warrant offering and our coal purchase agreements, Royal Coal has been in the enviable position of being able to repay over $19 million of debt, while also implementing plans for production expansion at Big Branch in a rising price environment for thermal coal,' commented Tom Griffis Chairman of Royal Coal. 'Now with the retirement of the $2.00/ton royalty complete, cash flow will be even stronger as coal production increases at Big Branch and is absent of the previous $2.00/ton royalty which has now been retired in full.'
About Royal Coal
Royal Coal is a coal exploration and production company, headquartered in Toronto, Ontario, Canada with a regional office in Hazard, Kentucky, U.S.A. whose primary business focus is developing producing surface coal mining operations in the Central Appalachian coal producing region of the United States, which includes parts of West Virginia, Virginia, Kentucky, Ohio, and Tennessee.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Royal Coal
Tom Griffis, Chairman
(416) 861-8775
Royal Coal
Richard Buzbuzian, Investor Relations
(647) 501-3290