The financing commitment from Marret will bear an interest rate of 9.9% per annum and have a three-year term.
As part of the agreement, Xinergy will pay $200,000 and issue up to 1.5 million shares to various funds under Marret management.
Earlier this year, Xinergy completed acquisition of the 42,000-acre Straight Creek complex in Kentucky’s Bell and Harlan Counties where ongoing exploration activities have improved the company’s total portfolio by 43 million tons of proven and probable coal to date.
Xinergy’s key producing assets also include the Raven Crest and Brier Creek property in West Virginia, the South Fork Coal Company and True Energy in Virginia.
