Mercuria Energy Group Holdings SA a wholly owned subsidiary of Mercuria Energy Group Ltd announces a recent financing transaction and partnership with US coal producer Bowie Resources LLC.
Mercuria Energy Group Holdings SA has replaced the prior primary senior lender to Bowie and has also provided Bowie with additional sources of funding. Other subsidiaries of Mercuria have acquired warrants in Bowie and are providing marketing and risk management services focused on bringing Bowie significant opportunities to optimize its current and future sales.
The transaction comes shortly after the re-start of longwall operations at the Bowie No 2 Mine in Delta County, Colorado in June concluding nearly three years of new development. From 2000 through 2007 Bowie produced an average of 5 million tons per year of super compliance bituminous coal. Bowie current recoverable reserve base is estimated at 40 million tons and the company has a new drilling program underway to further define and quantify additional potential reserves.