September 26, 2022 - Ramaco Resources, Inc. (NASDAQ: METC) ("Ramaco" or the "Company") announced that it has closed the previously announced acquisition of 100% of the equity interests of Maben Coal LLC ("Maben"), an entity owned by Appleton Coal LLC, through the Company's subsidiary Ramaco Development, LLC (the "Acquisition"). Maben Coal LLC holds approximately 33 million tons of minable coal on over 28,000 leased acres located in Wyoming County and Raleigh County, West Virginia.

The purchase price of $30 million consisted of: (i) $9 million to be paid in cash at closing and (ii) $21 million paid from the proceeds of a two-year secured note payable to Investec Bank, PLC (the "Lender"). The Acquisition is anticipated to be accretive to the Company over the next 12 months.

The Maben property contains various areas of high quality low vol met coal in the Sewell, Pocahontas 3, Pocahontas 4, and Pocahontas 6 (and all seams between the Sewell and Pocahontas 6) seams of coal. The Company expects that the 1.5 million tons of coal contained in the Sewell seam will be mined beginning in the first quarter of 2023 by the surface and high wall mining methods.

The Company will consider the deep mine development of the 31 million tons of coal contained in the Pocahontas 3 and the Pocahontas 4 seams at some future point. Such future development would involve adding approximately 1 million tons per year at full production with construction of a new preparation plant and loadout.

Maben has existing mining permits issued by the West Virginia Department of Environmental Protection which authorize mining by both surface and highwall mining methods, as well by underground operations. The property also has issued permits covering an existing haul road, as well as an active refuse disposal area together with a preparation plant and unit train loadout, neither of which has yet been constructed. 

The Sewell seam mine development will begin immediately after the closing. Initial production is expected in the first quarter of 2023 with an anticipated annual yield of 250,000 tons in 2023, remaining at that level through 2028. The Company estimates that the near-term Maben mining operations will have cash mine costs in the $80 per ton range, plus additional trucking costs to our Knox Creek preparation plant. 

The Acquisition cost and capital expenditures related to mine development and equipment are expected to be approximately $15 million, with the majority of that spend in 2022.