HOUSTON, Jan. 4 /PRNewswire-FirstCall/ -- Natural Resource Partners L.P.
(NYSE: NRP) and (NYSE: NSP), announced today that it has closed its previously
announced transaction with Adena Minerals, LLC, an affiliate of The Cline
Group. The transaction includes the purchase of coal reserves, transportation
assets and a right to acquire up to 3 billion additional tons of coal reserves
and related infrastructure. NRP issued 3,913,080 common units and 541,956
newly issued Class B units. In addition, the general partner of Natural
Resource Partners issued Adena Minerals a 22% interest in the general partner
and in the outstanding incentive distribution rights. Following the issuance
of the new units, NRP has 29,795,568 units outstanding, including 23,576,795
common units traded under the symbol "NRP" on the NYSE, 5,676,817 subordinated
units traded under the symbol "NSP" on the NYSE and 541,956 Class B units that
are not publicly traded.
Simultaneous with the closing of this transaction, Natural Resource
Partners signed a definitive agreement to purchase the reserves and
transportation infrastructure at Cline's Gatling Ohio complex. This
transaction will close upon commencement of coal production, which is
currently expected to occur in 2008. At the time of closing, NRP will issue
Adena 2,280,000 additional units, and the general partner of NRP will issue
Adena an additional 9% interest in the general partner and the outstanding
incentive distribution rights.
In conjunction with the transaction, J. Matthew Fifield has joined the
board of directors of GP Natural Resource Partners LLC as one of two directors
to be named by Adena Minerals. Mr. Fifield, 32, is a Managing Director of
Adena Minerals, LLC. Mr. Fifield joined The Cline Group in 2005, where he
concentrates on business development and transportation infrastructure. Prior
to joining The Cline Group, Mr. Fifield worked at Resource Capital Funds, a
private equity firm focused on investments in the global mining sector. Mr.
Fifield also previously worked at UBS where he covered heavy equipment
manufacturers and provided corporate finance advisory services to the mining
sector. An additional independent director will be named by Adena Minerals at
a later date.
Natural Resource Partners L.P. is headquartered in Houston, TX, with its
operation's headquarters in Huntington, WV. NRP is a master limited
partnership that is principally engaged in the business of owning and managing
coal properties in the three major coal producing regions of the United
States: Appalachia, the Illinois Basin and the Powder River Basin.
For additional information, please contact Kathy Hager at 713-751-7555 or
khager@nrplp.com . Further information about NRP is available on the
partnership's website at http://www.nrplp.com .
This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission. Such statements include the estimated
reserves associated with the right to purchase. All statements, other than
statements of historical facts, included in this press release that address
activities, events or developments that the partnership expects, believes or
anticipates will or may occur in the future are forward-looking statements.
These statements are based on certain assumptions made by the partnership
based on its experience and perception of historical trends, current
conditions, expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of
the partnership. These risks include, but are not limited to, decreases in
demand for coal; changes in operating conditions and costs; production cuts by
our lessees; commodity prices; unanticipated geologic problems; changes in the
legislative or regulatory environment and other factors detailed in Natural
Resource Partners' Securities and Exchange Commission filings. Natural
Resource Partners L.P. has no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.
SOURCE Natural Resource Partners L.P.
CONTACT:
Kathy Hager of Natural Resource Partners L.P.,
+1-713-751-7555,
or
khager@nrplp.com