Metallurgical coal producer American Resources sold three idled permits associated with an underground mine and a surface mine at its Perry County Resources subsidiary in eastern Kentucky to an undisclosed buyer, the company announced Wednesday.
The non-core assets, located in Perry County, Kentucky, were sold for approximately $1 million in cash and equipment. The sale also reduced American Resources' liabilities by shedding over $3 million in associated reclamation bonds.
Perry County Resources and all of its assets were purchased by American Resources in September through bankruptcy from Cambrian Holdings Company.
American Resources said the permit sale is expected to close in 30 days and "is subject to certain conditions that must be met which the buyer is working on."
"The sale of these non-core permits is very much consistent with our strategic restructuring plan and previously announced Mine Consolidation Project at Perry County Resources," chairman and CEO Mark Jensen said in the statement. "We are excited that the idled permits are going to a company that most likely has them in their near-term mining plan."
American Resources said its "plan has been to consolidate equipment and infrastructure of the idled, non-core mines to further support and expand the productivity of the complex's main base-load mine."
