Ramaco Resources Raises $200M Through Public Offering

Ramaco Resources has closed a $200 million public offering, selling 10.67 million shares at $18.75 per share. The company plans to use the proceeds to accelerate the development of its rare earth elements and critical minerals project, pursue strategic growth opportunities, and for general corporate purposes. Analysts rate the stock a Buy with a $13.00 price target.

Ramaco Resources, Inc. (NASDAQ: METC, METCB) announced today the closing of its previously announced underwritten public offering of Class A common stock. The company sold 10,666,667 shares at a public offering price of $18.75 per share, generating approximately $200 million in gross proceeds before deducting underwriting discounts, commissions, and other offering expenses [1].

The proceeds from the offering will be used to fund the acceleration of Ramaco Resources' development of its rare earth elements and critical minerals project, pursue strategic growth opportunities, and for general corporate purposes. The company's rare earth and critical minerals project is a significant asset, with a major deposit of primary magnetic rare earths and critical minerals discovered in Sheridan, Wyoming [2].

Yorktown Energy Partners IX, L.P., Yorktown Energy Partners X, L.P., and Yorktown Energy Partners XI, L.P. granted the underwriters a 30-day option to purchase up to an additional $30 million of the company's Class A common stock. This option was fully exercised on August 6, 2025, and the sale of the additional shares is expected to be completed on August 8, 2025. However, the company will not receive any proceeds from the sale of these additional shares [1].

The public offering was led by Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC, with ArentFox Schiff LLP representing the company and Davis Polk & Wardwell LLP representing the underwriters. The shelf registration statement relating to the offered securities was filed with the Securities and Exchange Commission (SEC) and was automatically effective upon filing on August 5, 2025 [1].

Analysts have rated the stock a Buy with a $13.00 price target, reflecting confidence in the company's strategic plans and the potential of its rare earth and critical minerals project [2].

References:
[1] https://www.prnewswire.com/news-releases/ramaco-resources-inc-announces-closing-of-upsized-200-million-public-offering-302524646.html
[2] https://www.morningstar.com/news/pr-newswire/20250807cl46745/ramaco-resources-inc-announces-closing-of-upsized-200-million-public-offering