Universal Coal has completed the acquisition of its third operating colliery ahead of schedule.
Through its subsidiary, North Block Complex Proprietary Limited (NBC), Universal has acquired the assets that comprise the North Block Complex from Exxaro Coal Mpumalanga Proprietary Limited and Exxaro Coal Proprietary Limited (together, Exxaro) for an adjusted purchase price of AUS$8.9 million.
CEO Tony Weber stated: "Early completion of the NBC acquisition will enable Universal Coal to benefit from additional operating months in the current reporting period. It will also enable us to apply our business and operating model to the North Block Complex and to restore production levels achieved historically.
"The inclusion of the NBC in the company's portfolio of assets will significantly increase our projected saleable product pipeline by adding an additional production of up to 2.7 million tpy to the company's production outlook. The acquisition of the fully operating colliery gives us immediate production and cash flow benefits.”
Since entering into the sale and purchase agreement (SPA) in March, significant progress has been made in fulfilling the various conditions precedent to the acquisition of the North Block Complex, with all outstanding conditions under the SPA now fully concluded.
View the full terms and conditions of the agreement here.
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