Mohegan Energy Trustees Acquires West Virginia Metallurgical Coal Operation from Met Resources through a $100 Million Strateg...
May 16 2018 - 11:42AM
Business Wire
Mohegan Energy Trustees, LLC (“Mohegan”), through its
wholly owned subsidiary Cornerstone Minerals, LLC
(“Cornerstone”), announced today the acquisition of a low
vol metallurgical coal operation and related equipment in West
Virginia from Met Resources, LLC.
Following the acquisition, Mohegan is focused on ramping-up
production, lowering costs, improving existing infrastructure, and
constructing a 350 ton/hour processing plant and additional rail
out facility.
Cornerstone’s mining operations are led by Greg Jessee, Managing
Partner and Head of Operations, who is recognized in West Virginia
for his leadership of world class mining facilities and
award-winning land reclamation efforts. Rick McCormick, Managing
Partner, and a renowned global expert in coal processing
techniques, will oversee Mohegan’s commercial activities.
To fund the transaction, Mohegan has entered a strategic
partnership with Orion Energy Partners (“Orion Energy”), a
New York-based private equity firm that provides creative capital
solutions to North American middle market energy infrastructure
businesses. Together with its affiliate funds, Orion Energy is
providing a $100 million facility for the acquisition and related
infrastructure investments.
“Our partnership with Orion Energy provides Mohegan with the
long-term strategic and financial support we need to safely and
efficiently maximize the value of our acquisition,” said Rick
McCormick, Mohegan’s Managing Partner.
“Mohegan’s management is well positioned to implement industry
leading extraction and polishing techniques and assure exceptional
performance during this critical time of rising metallurgical
demand,” said Gerrit Nicholas, Co-Founder and Managing Partner of
Orion Energy. “Orion Energy expects to quickly deploy the $100
million facility to support the modernization and expansion of the
Mohegan mines to maximize production while assuring the highest
quality and safest operational practices. We’re pleased to be
partnering with metallurgical coal’s premiere operating team, and
look forward to a prosperous and collaborative relationship.”
Flaherty Sensabaugh Bonasso PLLC and Jackson Kelly PLLC acted as
legal counsel and Riverside Management Group, LLC of Westport, CT
acted as sole financial advisor to Mohegan.
Latham & Watkins LLP and Bowles Rice LLP acted as legal
counsel to Orion Energy.
About Mohegan Energy Trustees
Mohegan is a newly formed, private company that responsibly and
efficiently operates a low vol metallurgical coal operation in West
Virginia. Following its acquisition of Cornerstone, Mohegan is
focused on ramping-up production, lowering costs, and improving
existing infrastructure.
About Orion Energy Partners
Orion Energy Partners is a credit-oriented private equity firm
with over US$ 1 billion of investable capital. Orion Energy is
focused on providing creative capital solutions to middle market
energy infrastructure businesses across North America and select
international markets with a focus on downstream, midstream,
conventional electric power, renewable energy and storage,
asset-heavy energy services and other energy subsectors. Its
management has substantial experience leading successful energy
companies and energy infrastructure investments. For more
information, visit www.OrionEnergyPartners.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180516006144/en/
For Mohegan:Richard McCormickManaging
PartnerRMcCormick@csminerals.comorFor Orion Energy:Gerrit
NicholasManaging PartnerGerrit@OrionEnergyPartners.com