Rhino Resource Partners LP (OTCPK:RHNO) and Royal Energy Resources, Inc. (OTCPK:ROYE) signed an agreement to acquire Armstrong Energy, Inc. from Rhino Resource Partners Holdings, LLC on September 30, 2016. Rhino Resource Partners will acquire the stake in Armstrong Energy, Inc in exchange for 10 million newly issued common units of Rhino and Royal Energy Resources, Inc will issue a 50% ownership of Rhino GP LLC to Rhino Holdings in exchange. The closing of the agreement is conditioned upon the current bondholders of Armstrong Energy agreeing to restructure their bonds and Rhino refinancing its current revolving credit agreement with funds from an equity investment into Rhino to be arranged by Rhino Holdings, obtaining governmental approvals and approval of a majority of the minority of the limited partners of Rhino. The agreement is also subject to other standard closing conditions and required approvals. Rhino Resource has formed a Conflicts Committee to evaluate the transaction. The agreement will be consummated on or before December 31, 2016. Ann Marie Cowdrey of Thompson & Knight LLP acted as legal advisor for Rhino Resources Partners Holdings LLC.

Rhino Resource Partners LP (OTCPK:RHNO) and Royal Energy Resources, Inc. (OTCPK:ROYE) cancelled the acquisition of Armstrong Energy, Inc. from Rhino Resource Partners Holdings, LLC on December 30, 2016.