July 4, 2018 - Xinergy Ltd. (TSX:XRG) says it has sold its Straight Creek and Red Bird thermal coal mining operations in Kentucky for $47.2 million, providing the company with the financial flexibility to position its remaining assets for "significant growth."
The divestiture furthers Xinergy's greater emphasis on metallurgical coal, chief executive Matt Goldfarb said Monday in a statement.
The company, which has its headquarters in Knoxville, Tenn., said affiliates of JW Resources Inc. have bought Xinergy's thermal coal operations in Kentucky's Bell, Clay, Harlan, Knox and Leslie counties.
It said the deal is considered a "related party" transaction because Jon Nix, who owns more than 10 percent of Xinergy, will also has a five percent stake in the buying company.
However, Xinergy says the two companies aren't related parties, Nix isn't a member of Xinergy's board of directors and GMP Securities LP provided an opinion that the price is fair from a financial point of view.
On the Toronto Stock Exchange, Xinergy shares were up two cents at 82 cents Monday morning.
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