Ramaco Resources Prices Upsized Offering of $200 Million Shares
Ramaco Resources Announces Major Offering for Growth
Recently, Ramaco Resources, Inc. (NASDAQ: METC) confirmed the pricing of an ambitious public offering aimed at raising capital to support its ongoing development projects. This offering involves 10,666,667 shares of Class A common stock, with each share priced at $18.75. It is expected to generate approximately $200 million in gross proceeds before expenses.
The strategy behind this offering is twofold: to bolster the development of rare earth elements and critical minerals and to create strategic growth opportunities within the company. This planning showcases Ramaco's commitment to expanding its portfolio in the coal and minerals field.
Details of the Offering and Strategic Use of Proceeds
In addition to the shares directly sold by Ramaco, the company’s stockholders, Yorktown Energy Partners IX, X, and XI, have granted underwriters a 30-day option to purchase up to an additional $30 million worth of Class A common stock. This option is a strategic move to enhance the offering's financial success and provide flexibility in the company’s capital-raising efforts.
Ramaco intends to utilize the net proceeds from the offering primarily to accelerate its projects focused on rare earth elements. This expansion into critical minerals is significant as markets for these resources grow, driven by demand in technology and renewable energy sectors.
Timeline and Management of the Offering
The public offering is anticipated to close shortly, contingent upon standard closing conditions being met. Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC are leading the effort as joint book-running managers for this offering, reflecting the confidence major financial institutions have in Ramaco's future.
Future Prospects in Coal and Mineral Resources
Ramaco Resources’ operational footprint is quite extensive, with four active metallurgical coal mining complexes. The company's push to explore rare earth elements at its Wyoming site marks a significant turning point in its operational strategy. This initiative not only secures future growth but also places Ramaco on the map as a player in the critical minerals market.
Moreover, the discovery of a substantial deposit of magnetic rare earth elements near Sheridan, Wyoming, has positioned Ramaco to capitalize on emerging trends in this market. The company is also conducting research and operations to transform coal into advanced carbon products, highlighting its innovative approach to traditional resources.
Investor Relations and Company Values
For further inquiries or details about the offering, investors can reach out to Ramaco Resources' investor relations team. Their dedication to transparency and maintaining open communication with shareholders underlines their commitment to fostering a strong relationship within the investment community.
About Ramaco Resources, Inc.: This company stands as a prominent operator in the high-quality, low-cost metallurgical coal sector and continues to develop its capacity in critical minerals. Headquartered in Lexington, it maintains a vision of growth and innovation through its strategic initiatives, including expansion into emerging markets.
Frequently Asked Questions
What is the purpose of Ramaco Resources' $200 million offering?
The funds will accelerate the development of rare earth elements and critical minerals, as well as support strategic growth opportunities.
Who manages the public offering for Ramaco Resources?
Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC are acting as lead joint book-running managers for the offering.
Where does Ramaco Resources operate?
Ramaco operates in areas with active coal complexes and is developing projects in Wyoming focused on rare earth elements.
What are the benefits of the additional shares offered?
The additional shares will provide financial flexibility and maximize the proceeds raised during the offering.
How can investors contact Ramaco Resources?
Investors can contact Ramaco Resources using their investor relations telephone line for inquiries regarding the offering and company operations.
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