Phoenix Coal Ltd (which is a joint venture between Bathurst Resources Ltd
(ASX:BRL) and Talley’s Energy Ltd) has entered into a conditional sale agreement with Solid Energy New Zealand Ltd.
Under this conditional agreement, Phoenix Coal plans to acquire certain coal mining assets including the Buller Plateau operating assets of Stockton Mine and the Rotowaro Mine.
The purchase price is NZ$46 million, plus semi-annual contingent payments of up to a maximum of NZ$50 million. The contingent payment structure is subject to a maximum 4 year term and is only operational if Metallurgical Coal prices are above NZ$150 per tonne.
This acquisition will be funded by way of a NZ$15 million bank debt facility and equity commitments from the joint venture participants.
Bathurst Resources reported a net profit of $983,000 at 30 June 2016.
