Cockatoo Coal Limited (ASX:COK) has reached agreement with JS Baralaba Wonbindi to acquire its minority interest in the Baralaba Joint venture.
The coal producer says the sale price will be $1 with existing loans from JSBW of approximately $60 million to remain in place following completion of the sale.
The Baralaba JV holds the Baralaba North mine which is hoped to produce 3.5 million tonnes per annum.
CEO Andrew Lawson says that while they respect the JFE Group’s decision to restructure its exposure to coal investments, they welcome their continued involvement through the increased and extended offtake agreement, and the longer term confidence in the project demonstrated by their decision to leave their existing loans in place and defer repayment.
Cockatoo Coal reported a net loss of $170 million in the first half of the 2014 financial year.
