Cline Mining: Marret Asset Management announces binding agreement for sale of New Elk Coal Company, LLC by Cline Mining Corporation, part of the Private Portfolio of Marret High Yield Strategies Fund and Marret Multi-Strategy Income Fund

TORONTO, Jan. 22, 2020 /CNW/ - Marret Asset Management Inc. (Marret) today announced that Cline Mining Corporation (Cline) has entered into a binding agreement (Agreement) for the sale by Cline to Allegiance Coal Limited (Allegiance) of all the shares in New Elk Coal Company, LLC (NECC). NECC owns the fully permitted New Elk Coal hard coking coal mine (Mine), located in southeast Colorado. The main asset of Marret High Yield Strategies Fund (MHY) (CSE: MHY.UN) and Marret Multi-Strategy Income Fund (MMF) (CSE: MMF.UN) is senior secured debt and equity issued by Cline. The Agreement reflects the term sheet originally signed by Cline and Allegiance on July 15, 2019.The principal terms of the sale are as follows:The purchase price for the shares in NECC will be USD $1, with Allegiance than arranging for the repayment of certain obligations owed by NECC to Cline equal to CDN $55 million (Debt), which represents a total acquisition cost of CDN $55,000,001.31.Completion of the sale must take place before July 15, 2020 (Completion)The Debt will be repaid by NECC to Cline as follows:US$3M ...Full story available on Benzinga.com