Alliance Resource to use credit facilities for White Oak purchase

By Wendy Van Sickle

Columbus, Ohio, July 6 – Alliance Resource Partners, LP will use funds from its existing credit facilities to fund part of the $50 million purchase of all remaining equity interests of White Oak Resources LLC, according to a press release issued Monday.

Alliance said it will also use some cash on hand for the transaction.

The company already owns some equity interests in White Oak. After the acquisition, Alliance will own 100% of the equity interests in White Oak, coal reserves at the White Oak Mine No. 1 that are leased to White Oak and a preparation plant and loading facilities at the mine in Hamilton County, Ill.

Mine No. 1 began longwall mining operations in October 2014 and is currently producing about 6 million tons of coal a year, according to the release.

The deal is expected to close within 30 days.

Alliance Resource is a Tulsa, Okla.-based coal company.

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