Americas strengthens financial position

TENNESSEE operator Americas Energy will be able to advance the development of assets from its recent acquisition of Evans Coal after renegotiating the financial terms with the seller and eliminating $US25 million in debt.
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The Americas Energy headquarters in Tennessee.

Donna Schmidt

Company president Chris Headrick said the $25 million was in the form of a promissory note relating to the transaction.

“We successfully negotiated a reduction in the purchase amount and the associated finance terms related to our acquisition of Evans Coal,” he said.

The amended agreement reduced the amount payable by Americas to $2 per clean ton and no minimum payments.

The operator will in turn be left with a much stronger financial position through eliminating the debt tied in with the purchase and by generating more free cash flow.

“[This] will allow us to begin development of the first three of our five deep mine permits, repurpose and expand our existing surface mine permits and further develop the leased acreage acquired in the purchase,” Headrick revealed.

Americas announced the completion of the Evans Coal takeover in early April.

"Finalizing the purchase … gives AENY access to more than 1,785 acres of permitted coal property,” Headrick said at the time.

According to Kentucky professional engineer Michael Gambrel, Evans Coal controlled about 348 million tons of reserves, or 211Mt of recoverable coal, worth more than $13 billion at market prices at that time.

Based in Knoxville, Tennessee, Americas has projects in operation in Kentucky and Tennessee and is evaluating several other opportunities in the region.

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