Buyers back out of deal for idled Colorado mine
PAONIA, Colo. (AP) — The owner of an idled Colorado coal mine says financial market conditions have forced investors to back out of a deal to buy the company.
The Grand Junction Daily Sentinel reports Bowie Resource Partners, owner of the North Fork Valley’s Bowie No. 2 Mine near Paonia, announced Oct. 31 that Canyon Consolidated Resources, LLC, was to buy out the majority ownership in Bowie from Galena Private Equity Resources Fund.
The purchase of Bowie depended on Bowie and Canyon Finance Corp. offering up to $375 million in financial notes to refinance existing Bowie debt and help fund the acquisition.
The bond sale was pulled earlier this month due to market skittishness among investors. Bowie last week says discussions with Canyon concluded without a sale agreement due to the financial market conditions.
Information from: The Daily Sentinel, http://www.gjsentinel.com