Attached files
| file | filename |
|---|---|
| 8-K - NATIONAL COAL CORP | fm8k-042010.htm |
| EX-99.2 - NATIONAL COAL CORP | exh99-2b.htm |
Exhibit
99.1
NATIONAL
COAL CORP. COMPLETES SALE OF ASSETS
Knoxville, Tenn. – (April 22,
2010) – National Coal Corp. (Nasdaq: NCOC), a Central and Southern Appalachian
coal producer, today announces that it has finalized its agreement to sell a
portion of its assets located on the New River Tract in Eastern Tennessee for
$11.8 million to Ranger Energy Investments, LLC, a company controlled by Jim
Justice. National Coal received a portion of the purchase price in
cash and the buyer assumed approximately $6.6 million of accounts payable the
Company owed to an affiliate of Ranger Energy. In addition, Ranger
Energy leased a portion of the Company’s coal reserves located on the New River
Tract. The Company also received from Ranger Energy the return of
approximately $1.9 million in cash that was previously pledged to secure
reclamation bonds and other liabilities associated with the New River Tract
operation.
The
assets sold include the Baldwin preparation plant, the active underground mine
number 5A, coal inventories located on the property, and the idled surface mine
number 3, along with the associated permits and certain
liabilities. Additionally, the coal mineral rights on approximately
22,000 acres were leased to Ranger Energy for a royalty, which ranges from 6% to
8% of applicable revenues.
Prior to
the closing of the asset sale, Ranger Energy purchased from Centaurus Energy
Master Fund, LP $30.3 million of the Company’s 10.5% senior secured notes due
2010 and the Company’s $5 million short-term revolving credit facility, of which
$4.5 million had been drawn.
“The
Company used the majority of the proceeds from this transaction for payment on
our outstanding accounts payable and equipment debt, and to pay the $4.5 million
outstanding balance owed on the short-term credit facility,” said Daniel A.
Roling, President and CEO. “In so doing, the Company returned
accounts payable to a more current status and terminated the short-term credit
facility. These actions cured our default under the credit
facility.
“We will
continue to focus on ways to reduce our expenses and outstanding
debt. In addition, we will continue to pursue strategic transactions
that will enable us to repay our $42 million in public debt which matures in
December 2010,” continued Mr. Roling.
National
Coal’s continuing operations in Tennessee include the coal mineral and mining
rights to approximately 57,000 acres of land, along with mining complexes that
include one active underground mine and one active surface mine. In
addition, National Coal continues to own and operate one preparation plant and
one unit train loading facility served by the Norfolk Southern
Railroad.
About
National Coal Corp.
Headquartered
in Knoxville, Tenn., National Coal Corp., through its wholly owned subsidiary,
National Coal Corporation, is engaged in coal mining in East Tennessee.
Currently, National Coal employs about 220 people. National Coal sells steam
coal to electric utilities and industrial companies in the Southeastern United
States. For more information and to sign-up for instant news alerts
visit www.nationalcoal.com.
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