Bounty Mining Ltd has acquired the assets of Caledon Coal Pty Ltd and Blackwater Coal Pty Ltd. The assets include the established Cook Colliery and the Minyango coking coal project.
Bounty will settle the acquisitions for a total of US$31.5 million, with US$6.7 million paid on completion and the balance deferred and paid over 18 months. The acquisitions include all of the assets of Caledon and Blackwater, except for physical property associated with the Minyango project.
In a separate but related transaction, Bounty has acquired the assets associated with the Cook Colliery that had remained the property of Cook Resource Mining Pty Ltd, a subsidiary of Glencore Ltd for a total of US$10 million in deferred payments. This acquisition places Bounty in full ownership and control of the assets related to Cook Colliery, including the related mining lease, rail loop, Glencore wash plant and coal marketing agreement.
Bounty is expecting to take possession of the projects in late November 2017. Bounty will bring the Cook Colliery back into production as a more flexible and efficient board and pillar style mining operation (previously longwall). Coal production is expected to commence in 1Q18 and Bounty aims to progressively increase production to a total 1.8 million t of product over 12 months. Historically, the Cook Colliery has produced 80% of hard coking coal and 20% of premium thermal coal. These transactions will provide Bounty with near term revenue from the Cook Colliery and a mid-term development project in Minyango, for which a mining lease has already been granted. Bounty will continue with development of the Wongai project, but this has a longer-term horizon.
Read the article online at: https://www.worldcoal.com/mining/14112017/bounty-mining-buys-coal-mines-from-caledon-and-blackwater/