RAMACO RESOURCES, INC. ANNOUNCES CLOSING OF UPSIZED $200 MILLION PUBLIC OFFERING

Rhea-AI Summary

Ramaco Resources (NASDAQ: METC) has successfully closed its upsized public offering of Class A common stock, raising $200 million in gross proceeds. The company sold 10,666,667 shares at $18.75 per share.

Additionally, the underwriters exercised their 30-day option to purchase up to $30 million of additional shares from Yorktown Energy Partners. The sale of these additional shares is expected to complete on August 8, 2025, with proceeds going to the selling stockholders.

The company plans to use the net proceeds to accelerate the development of its rare earth elements and critical minerals project, pursue strategic growth opportunities, and for general corporate purposes. Morgan Stanley and Goldman Sachs served as lead joint book-running managers for the offering.

Positive

• Successful raise of $200 million in gross proceeds through public offering
• Full exercise of $30 million additional shares option by underwriters indicates strong demand
• Proceeds will fund development of strategic rare earth elements and critical minerals project
• Backing from major investment banks Morgan Stanley and Goldman Sachs as lead managers

Negative

• Significant dilution for existing shareholders with 10.67 million new shares issued
• Additional $30 million in shares being sold by existing stockholders could pressure stock price

Insights

Financial Analyst

Ramaco raised $200M through stock offering to accelerate rare earth elements project and strategic growth, strengthening its financial position.

Ramaco Resources has successfully completed an upsized $200 million public offering by selling 10,666,667 shares of Class A common stock at $18.75 per share. This significant capital raise represents a strategic financial move that substantially bolsters the company's balance sheet. The underwriters also fully exercised their option to purchase an additional $30 million of shares from Yorktown Energy Partners, indicating strong demand for the offering.

The proceeds are earmarked primarily for accelerating development of Ramaco's rare earth elements and critical minerals project. This focus is particularly noteworthy as rare earth elements are essential components in many high-tech applications including renewable energy technologies, defense systems, and consumer electronics. The global push toward green energy and technology independence has created growing demand for these critical minerals.

Beyond the rare earth elements initiative, management has indicated that funds will support unspecified "strategic growth opportunities" and general corporate purposes. This flexible capital allocation approach gives Ramaco considerable financial runway to pursue both organic growth and potentially accretive acquisitions in a challenging market environment.

The successful completion of this offering with participation from major investment banks Morgan Stanley and Goldman Sachs suggests institutional confidence in Ramaco's strategic direction. By securing this substantial funding, Ramaco has positioned itself to potentially capture greater market share in the critical minerals space while strengthening its financial foundation.

LEXINGTON, Ky., Aug. 7, 2025 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC, METCB) ("Ramaco Resources" or the "Company") announced today the closing of its previously announced underwritten public offering of Class A common stock (the "Offering"). The Company sold 10,666,667 shares of Class A common stock in the Offering at a public offering price of $18.75 per share. The aggregate gross proceeds to the Company from the Offering were approximately $200 million, before deducting underwriting discounts, commissions and other Offering expenses. All shares of Class A common stock  sold in the Offering, other than the Additional Shares (as defined herein), were offered by the Company.

In connection with the Offering, Yorktown Energy Partners IX, L.P., Yorktown Energy Partners X, L.P. and Yorktown Energy Partners XI, L.P. (collectively, "Yorktown"), selling stockholders of the Company, granted the underwriters a 30-day option to purchase up to an additional $30 million of the Company's Class A common stock at the public offering price, less the underwriting discount (the "Additional Shares"). On August 6, 2025, the underwriters notified Yorktown that they had exercised their option to purchase the Additional Shares in full. The sale of the Additional Shares to the underwriters is expected to be completed on August 8, 2025 and the Company will not receive any proceeds from the sale of such Additional Shares.

The Company currently intends to use the net proceeds from the Offering to fund the acceleration of its development of its rare earth elements and critical minerals project, for strategic growth opportunities and for general corporate purposes.

Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC acted as lead joint book-running managers of the Offering.

ArentFox Schiff LLP represented the Company and Davis Polk & Wardwell LLP represented the underwriters in connection with the Offering.

A shelf registration statement relating to the offered securities was filed with the Securities and Exchange Commission (the "SEC") and was automatically effective upon filing on August 5, 2025. A final prospectus supplement and accompanying prospectus relating to the Offering was filed, with the SEC on August 7, 2025, and is available on the SEC's website, located at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to this Offering may be obtained from the offices of Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; or the offices of Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282, Attention: Prospectus Department, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

ABOUT RAMACO RESOURCES

Ramaco Resources, Inc. is an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, and southwestern Virginia and a developing producer of coal, rare earth and critical minerals in Wyoming. Its executive offices are in Lexington, Kentucky, with operational offices in Charleston, West Virginia and Sheridan, Wyoming. The Company currently has four active metallurgical coal mining complexes in Central Appalachia and one development rare earth and coal mine near Sheridan, Wyoming in the initial stages of production. In 2023, the Company announced that a major deposit of primary magnetic rare earths and critical minerals was discovered at its mine near Sheridan, Wyoming. Contiguous to the Wyoming mine, the Company operates a carbon research and pilot facility related to the production of advanced carbon products and materials from coal. In connection with these activities, it holds a body of roughly 76 intellectual property patents, pending applications, exclusive licensing agreements and various trademarks. For more information about Ramaco Resources, please contact investor relations at (859) 244-7455.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of the words such as "estimate," "plan," "shall," "may," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, expectations regarding the  use of proceeds from the Offering. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Ramaco Resources. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under, but not limited to, the headings "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025, and the Company's other filings with the SEC. If any of these risks materialize or the Company's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Ramaco Resources does not presently know or that Ramaco Resources currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Ramaco Resources' expectations, plans or forecasts of future events and views as of the date of this press release. Ramaco Resources anticipates that subsequent events and developments will cause Ramaco Resources' assessments to change. However, while Ramaco Resources may elect to update these forward-looking statements at some point in the future, Ramaco Resources specifically disclaims any obligation to do so, unless required by applicable law. These forward-looking statements should not be relied upon as representing Ramaco Resources' assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

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SOURCE Ramaco Resources, Inc.

FAQ

How much did Ramaco Resources (METC) raise in its public offering?

Ramaco Resources raised $200 million in gross proceeds by selling 10,666,667 shares at $18.75 per share.

What will Ramaco Resources use the proceeds from the stock offering for?

The proceeds will be used to accelerate development of rare earth elements and critical minerals project, pursue strategic growth opportunities, and for general corporate purposes.

Who were the underwriters for Ramaco Resources' public offering?

Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC acted as lead joint book-running managers for the offering.

How many additional shares were offered through the underwriters' option?

The underwriters exercised their option to purchase $30 million worth of additional shares from Yorktown Energy Partners.

What was the price per share for Ramaco Resources' public offering?

The public offering price was $18.75 per share for Ramaco Resources' Class A common stock.