August 3, 2017 - Westmoreland Coal Company (Nasdaq:WLB) today announced that it has entered into a definitive agreement to sell its Roanoke Valley Power Facility (“ROVA”) for $5 million in cash to ROVA Venture, LLC.
“In December 2016, we amended our ROVA contract, relieving us from the obligation to operate the plant. This allowed us to more aggressively pursue the sale that we are announcing today. Additionally, we continue to anticipate the return of approximately $10 million of cash collateral this year related to ROVA power contracts,” said Kevin Paprzycki, Westmoreland’s Chief Executive Officer. “Our team did a great job executing this transaction and maximizing the realized value for the asset. This sale and the collateral return are meaningful steps towards our 2017 goals of achieving final resolutions on our two non-core assets and strengthening our balance sheet.”
The closing of the transaction, subject to customary terms and conditions, is expected to occur on or before September 30, 2017. The sale includes all the assets of ROVA. Westmoreland will retain approximately $2.7 million of reclamation liabilities related to offsite ash storage.
Westmoreland Coal Company is the oldest independent coal company in the United States. Westmoreland’s coal operations include surface coal mines in the United States and Canada, underground coal mines in Ohio and New Mexico, a char production facility, and a 50% interest in an activated carbon plant. Westmoreland also owns the general partner of and a majority interest in Westmoreland Resource Partners, LP, a publicly-traded coal master limited partnership