Hallador Energy Co. (NASDAQ: HNRG) said Oct. 18 that its Sunrise Coal subsidiary, which operates the Carlisle deep mine in Indiana, completed a new five-year senior secured $165m credit facility to replace its existing facility that was scheduled to mature in December 2012.
“The new facility reflects our financial strength and the confidence our lenders have in Sunrise, Hallador and the thermal coal business,” the company noted. “We are extremely proud to complete this facility considering the current slump in the coal business.”
PNC Bank served as the lead along with BB&T, UMB Bank, Old National Bank, Union Bank, First Merchants, First Financial and First Commonwealth. The new banks to the facility are BB&T, UMB and First Merchants. Hallador said it will draw on the facility as needed for development of new projects in Illinois and Indiana.
Said Hallador’s Aug. 3 Form 10-Q about a new mine project in the works: “We have leased roughly 19,500 acres in Vermillion County, Illinois near the village of Allerton. Based on our reserve estimates we currently control 32.3 million tons of recoverable coal reserves; 16.3 million which are proven and 16 million which are probable. A considerable amount of our 19,500 acres of leases has yet to receive any exploratory drilling, thus we anticipate our controlled reserves to grow as we continue drilling in 2012. The permitting process was started in the summer of 2011 and we filed the formal permit with the state of Illinois and the appropriate Federal regulators during June 2012. We are calling the new reserve the Bulldog mine. If the process proceeds smoothly, we could receive a mining permit as early as the first half of 2013. … Full-scale mine development will not commence until there is proven market demand.”
For the first half of 2012, Sunrise Coal sold out of the existing Carlisle mine in Indiana a total of 1,444,000 tons at an average price of $43/ton. For the first half of 2011, it sold 1,581,000 tons at an average price of $41.81/ton.