Ciner Resources LP (NYSE:CINR) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On June 28, 2018, Ciner Wyoming LLC (“Ciner Wyoming”) entered into a Settlement Agreement and Release (the “Settlement Agreement”) with Rock Springs Royalty Company, LLC (“Rock Springs”) to settle an action in the Third Judicial District Court in and for Sweetwater County, State of Wyoming (the “Court”), entitled Ciner Wyoming LLC v. Rock Springs Royalty Company, LLC, No. C-16-77-L (the “Action”). The Action involved claims relating to the License Agreement, dated July 18, 1961, between Union Pacific Railroad Company and Stauffer Chemical Company of Wyoming (as subsequently amended, the “License Agreement”), including Ciner Wyoming’s contention that it has overpaid royalties to Rock Springs under the License Agreement and that Ciner Wyoming is entitled to a modification of the expiration term of the License Agreement. to the terms of the Settlement Agreement, among other things (i) Rock Springs must pay Ciner Wyoming the sum of $27,500,000 by wire transfer within 14 business days; (ii) Ciner Wyoming and Rock Springs must enter into the Amendment (as defined below); (iii) concurrently with the transfer of the settlement payment, Ciner Wyoming and Rock Springs must cause their respective counsel to execute a stipulation requesting that the Court dismiss the Action. The Settlement Agreement contains customary mutual release provisions, representations and warranties.
The foregoing description of the Settlement Agreement is qualified in its entirety by the terms of the Settlement Agreement, which is filed herewith as Exhibit 10.1.
Also on June 28, 2018, to the terms of the Settlement Agreement, Ciner Wyoming entered into Amendment – 1961 Lease Agreement (the “Amendment”) with Rock Springs, which amends the License Agreement. The terms of the Amendment, among other things, (i) extends the term of the License Agreement to July 18, 2061 and for so long thereafter as Ciner Wyoming continuously conducts operations to mine and remove sodium minerals from the licensed premises in commercial quantities; and (ii) revises the production royalty rate for each sale of sodium mineral products produced from ore extracted from the licensed premises at the royalty rate of eight percent (8%) of the sale price of such sodium mineral products.
The foregoing description of the Amendment is qualified in its entirety by the terms of the Amendment, which is filed herewith as Exhibit 10.2.
Item 9.01 Financial Statements and Exhibits.
Ciner Resources LP ExhibitEX-10.1 2 cinerrscfullyexecutedset….To view the full exhibit click
About Ciner Resources LP (NYSE:CINR)
Ciner Resources LP, formerly OCI Resources LP, owns a controlling interest consisting of 51% membership interest in Ciner Wyoming LLC (Ciner Wyoming). Ciner Wyoming produces soda ash and serves a global market from its facility in the Green River Basin of Wyoming. The Company processes trona ore into soda ash, a raw material in flat glass, container glass, detergents, chemicals, paper and other consumer and industrial products. Its Green River Basin surface operations are situated on approximately 880 acres in Wyoming, and its mining operations consists of over 23,500 acres of leased and licensed subsurface mining area. The Company uses over six continuous mining machines and approximately 10 underground shuttle cars in its mining operations. Its processing assets consist of material sizing units, conveyors, calciners, dissolver circuits, thickener tanks, drum filters, evaporators and rotary dryers. The Company sells soda ash to American Natural Soda Ash Corporation (ANSAC).