Anglo American (LSE:AAL) will sell its 83.33 percent interest in the Dartbrook Coal Mine in Australia to Australian Pacific Coal. Dartbrook has been on care and maintenance since 2006, and the sale comes as Anglo American’s portfolio restructuring.
As quoted in the press release:
Under the terms of the SPA and Royalty Deed, AQC will acquire Anglo American’s interest in Dartbrook for up to A$50 million (approximately US$36 million), comprising an upfront cash payment of A$25 million and the grant of a royalty equal to A$3.0 for each tonne of coal produced by the operation in the future and A$0.25 for each tonne of coal sourced from other sites and processed using Dartbrook’s processing infrastructure. Royalty payments will be subject to escalation with reference to the Brisbane All Groups Consumer Price Index and capped at A$25 million (in real terms).
The transaction will be effected via a sale of shares in the subsidiary companies holding Anglo American’s interest in Dartbrook. The transaction remains subject to several conditions precedent, including the waiver of pre-emption rights by Anglo American’s joint venture partner, Marubeni Coal Pty Ltd (“Marubeni”) and the receipt of local and federal government consents for the transfer of the mining and exploration rights related to the operation. The transaction is expected to complete by mid-2016.
Get Our Expert Guide to Coal Investing FREE!
Download this FREE Special Report, Coal Price Forecast 2015 Types of Coal, Coal Prices and Coal Stocks
The post Anglo American to Sell Darbrook to Australian Pacific Coal appeared first on Investing News Network.