Advanced Emissions Solutions Announces Sale of Marshall Mine, LLC to Caddo Creek Resources Company, L.L.C.
07 September 2022 - 7:22AM
Advanced Emissions Solutions, Inc. (NASDAQ: ADES) (the "Company" or
"ADES"), a leader in emissions control solutions for coal-fired
power generation, industrial and municipal water purification
markets, today announced that it has signed a definitive agreement
to sell Marshall Mine LLC, the entity that owns the former lignite
mine currently being reclaimed located in Marshall, Texas
(“Marshall Mine”), to Caddo Creek Resources Company, L.L.C. (“Caddo
Creek”) (the “Transaction”). The Company had previously taken over
the Marshall Mine upon entering into its activated carbon supply
agreement with Norit Activated Carbon.
The Company does not expect any cash proceeds
from the Transaction and will pay out a purchase price of $2.4
million from cash balances that are currently restricted. As a
result of the Transaction, Caddo Creek will assume Marshall Mine’s
assets as well as the asset retirement obligation related to the
mine of $4.8 million. Upon completion of the Transaction, the
Company expects to record a gain of approximately $2.4 million.
Additionally, the elimination of the asset retirement obligation is
expected to result in the release of a portion of the Company’s
restricted cash balance when the Transaction closes which is
expected to occur in the first half of 2023. The closing of the
Transaction is subject to certain customary closing conditions
including obtaining applicable regulatory approvals.
“Although the reclamation work performed at the
Marshall Mine has gone extremely well and is under budget, this
sale allows us to continue to de-risk our balance sheet and to
focus on growing our consumables revenues,” said Greg Marken, CEO
of ADES. “The removal of the surety bond associated with the
Marshall Mine and the expected release of restricted cash
associated with the bond, will further enable us to continue to
improve operations at our Red River plant and focus on our recently
announced merger with Arq Limited.”
About Advanced Emissions Solutions,
Inc.Advanced Emissions Solutions, Inc. serves as the
holding entity for a family of companies that provide emissions
solutions to customers in the power generation and other
industries.
ADA brings together ADA Carbon Solutions, LLC, a
leading provider of powder activated carbon ("PAC") and ADA-ES,
Inc., the providers of ADA® M-Prove™ Technology. We provide
products and services to control mercury and other contaminants at
coal-fired power generators and other industrial companies. Our
broad suite of complementary products control contaminants and help
our customers meet their compliance objectives consistently and
reliably.
CarbPure Technologies LLC, (“CarbPure”), formed in
2015 provides high-quality PAC and granular
activated carbon ideally suited for treatment of potable water and
wastewater. Our affiliate company, ADA Carbon Solutions, LLC
manufactures the products for CarbPure.
Forward-Looking Statements
Statements in this press release regarding the
Company's business that are not historical facts, including
statements concerning optimizing cash flows and maximizing
shareholder value, are forward-looking statements that involve
risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from
those contained in the forward-looking statements, see "Risk
Factors" in the Company's Annual Report on Form 10-K.
Source: Advanced Emissions Solutions, Inc.
Investor Contact:Alpha IR
GroupRyan Coleman or Chris Hodges312-445-2870ADES@alpha-ir.com
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