Rhino Resource Partners LP announced that it expects to receive $12.96 million in funding from Weston Energy, LLC and Royal Energy Resources, Inc.

Rhino Resource Partners LP (OTCPK:RHNO) announced that it has entered into a new preferred financing agreement for a private placement of 1,295,967.123 series A preferred units at a price of $10 per share for gross proceeds of $12,959,671.23 on December 30, 2016. The transaction was led by new investor Weston Energy LLC, will subscribe 1,095,967.123 series A preferred units for 10,959,671.23. The transaction included participation from existing investor Royal Energy Resources, Inc. (OTCPK:ROYE), will subscribe 200,000 series A preferred units for $2,000,000.

The series A preferred has a five-year term. The series A preferred can be converted into common units once a cumulative return of cash threshold is met under terms defined in the agreement.