LEXINGTON, KY, Nov. 09, 2017 (GLOBE NEWSWIRE) -- Rhino Resource Partners LP (OTCQB: RHNO) (“Rhino” or the “Partnership”) today announced that it closed an agreement with a third party to transfer 100% of the memberships interests and related assets and liabilities in the Partnership’s Sands Hill Mining LLC (“Sands Hill”) entity to the third party in exchange for a future override royalty for any mineral sold, excluding coal, from Sands Hill after the closing date. The third party assumed the surface coal mining operations as well as the limestone operations at Sands Hill. The Partnership maintained ownership of an Ohio River barge loading facility that was previously owned and operated by the Sands Hill entity as the Partnership believes this asset can provide significant value to Rhino through the sale or potential lease of the facility. The Partnership expects to recognize a gain from the divestiture of Sands Hill since the third party will assume approximately $4.0 million of reclamation obligations associated with this operation.
Rick Boone, President and Chief Executive Officer of Rhino’s general partner, stated, “We are pleased to announce the divestiture of Sands Hill as we had positioned this operation to transition into a reclamation project. The new owners plan to continue the coal and limestone operations at this site. The continuation of this operation will provide employment opportunities for current employees and potentially others in this region. This transaction removes approximately $4 million of reclamation obligations from our balance sheet and further strengthens our financial position. I would like to thank the employees of Sands Hill for their contributions made to Rhino during the period of our ownership of Sands Hill.”
About Rhino Resource Partners LP
Rhino Resource Partners LP is a diversified energy limited partnership that is focused on coal and energy related assets and activities, including energy infrastructure investments. Rhino produces metallurgical and steam coal in a variety of basins throughout the United States.
Additional information regarding Rhino is available at its web site – RhinoLP.com.
Source: Rhino Resource Partners LP