Royal Coal (TSX VENTURE: RDA) (FRANKFURT: RLC), a producer of coal out of eastern Kentucky that has been in financial trouble lately, announced April 24 that it has received the resignation of Jeff Lowe as company CFO.
“The Board of Directors and Management would like to thank Mr. Lowe for his contributions to the Company and wish him success in his future endeavours,” the company added.
Royal Coal is a coal exploration and production company, headquartered in Toronto, Canada, with a regional office in Hazard, Ky.
Royal Coal said April 19 that it will be delayed in the filing of its annual financial statements for the year ended Dec. 31, 2011, accompanying management’s discussion and analysis, related CEO and CFO certifications and its annual information form. These documents will not be filed within the time period prescribed by applicable securities legislation and will be delayed indefinitely, Royal Coal said. “The indefinite delay in filing the 2011 Annual Filings will occur as a result of the Company’s current inability to fund the operation of its business, including the costs of completing the 2011 Annual Filings,” the company added.
Royal Coal had said on April 13 that it has received a statement of claim from Sandstorm Metals & Energy (US) Inc. and Black Bullet Coal LLC (an assignee of Sandstorm), in the Perry County, Ky., Circuit Court. That claim was against Royal Coal and its subsidiaries. The statement of claim relates to the alleged material breach by the Royal Coal and its subsidiaries of a coal production payment agreement, an additional coal purchase agreement, and a royalty agreement that provide for a commodity purchase and loan arrangement between these companies.