Clinch Resources Completes Debt Settlement

Clinch Resources Ltd. (CLCH) completed a debt settlement on July 15, 2026, issuing 1,565,954 common shares to settle US$1,409,359 of interest owed by its subsidiary, Active Resources, Inc. The shares were issued at a deemed price of C$1.25 per share, subject to a four-month statutory hold period under Canadian securities laws.

This transaction follows a clear operational progression since the company's reverse takeover and TSX listing in March 2026: mining operations commenced in April, first commercial production was achieved in May, and a Caterpillar HW 300 highwall miner was acquired in late May. The debt settlement is a non-cash corporate action designed to preserve working capital during the early production phase, with TSX listing approval pending.

Clinch Resources Ltd. (CLCH) settled interest obligations with equity, a standard practice for pre-revenue or early-stage mining companies aiming to conserve cash. The transaction resulted in minimal dilution, representing approximately 0.44% of the 355.3 million shares outstanding. This move aligns with the company’s stated strategy to fund development and operations through equity and debt instruments while ramping up production. The deal does not materially alter the operational roadmap or financial projections, though it reduces future cash interest obligations, a favorable outcome given the current low revenue base and negative operating cash flow.

Clinch Resources Ltd. (CLCH) is a U.S.-based metallurgical coal producer centered on its ARI project in West Virginia. The flagship ARI project encompasses 54,000 acres and holds approximately 111 million tons of measured and indicated resources. The company recently began commercial production at its Lanes Branch surface operation, employing highwall mining technology to extract coal efficiently without the need for traditional underground access.

In March 2026, Clinch Resources acquired a 38.8% indirect interest in JJ Resources Inc., which owns the fully permitted Sewell Mountain met coal mine. Management aims to establish the company as a significant low-cost central Appalachian met coal producer, leveraging the U.S. Department of Interior's critical mineral designation for met coal.