Allegiance Coal Limited (Allegiance) refers to its ASX Announcement dated 15 August 2022 (15 August Announcement), and is pleased to advise that it has, on behalf of its wholly owned subsidiary companies, New Elk Coal Company, LLC (NEC) and Black Warrior Minerals, Inc. (BWM), executed a formal coal sale agreement with Marco International Corporation (Marco).
The 15 August Announcement also referred to a US$40M loan from Marco to Allegiance Coal USA Ltd to be utilised to repay the Collins Street Convertible Note and provide additional funds to Allegiance for its capital expenditure programmes and working capital requirements.
Marco and Allegiance are currently working on the long form loan agreement and Allegiance will update the market once the loan and security documentation is completed. Although the parties have agreed the key commercial terms of the loan (as set out in the 15 August Announcement), the Company cautions that there is no certainty that the definitive agreement will be executed on consistent terms, or at all.
