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- Bowen Coking Coal (BCB) signs a binding share sale and purchase agreement with New Hope Corporation (NHC) for the acquisition of the shares in New Lenton Coal
- New Lenton Coal holds a 90 per cent interest in the Lenton Joint Venture which owns the New Lenton Project and the Burton Mine, both of which are in Queensland
- This acquisition is in line with Bowen’s strategy to become the next significant and independent coking coal producer in the Bowen Basin
- Completion of the acquisition is subject to a number of conditions and is expected to be completed by the end of Q1 2022
- Shares in Bowen are up 5.88 per cent on the market and are trading at 18 cents
Bowen Coking Coal (BCB) has signed a binding share sale and purchase agreement with New Hope Corporation (NHC) for the acquisition of New Lenton Coal.
On August 4, Bowen entered a binding term sheet with New Hope to acquire 100 per cent of the shares in New Lenton Coal.
The acquisition consisted of a $20 million upfront cash payment of cash and scrip, plus potential milestone and royalty payments of up to $77.5 million.
New Lenton Coal holds a 90 per cent interest in the Lenton Joint Venture with MPC Lenton, a subsidiary of Formosa Plastics, holds the remaining 10 per cent.
The Lenton Joint Venture owns the New Lenton Project and the Burton Mine, both of which lie in the Northern Bowen Basin in Queensland.
This acquisition is in line with Bowen’s strategy to become the next significant and independent coking coal producer in the Bowen Basin.
Completion of the acquisition is subject to a number of conditions, including Bowen securing adequate financing to replace the surety under the Queensland financial provisioning regime and entering a priority deed with financiers.
Bowen Executive Chairman Nick Jorss commented on the acquisition.
“The Acquisition will be transformational for Bowen and delivers on our strategy to create the next significant coking coal producer in the Bowen Basin,” Mr Jorss said.
“The team has been working very hard to pull together the numerous work streams required to execute these formal documents and we are excited to reach this significant milestone.”
The acquisition is expected to be completed by the end of Q1 2022.
Shares in Bowen were up 5.88 per cent on the market and were trading at 18 cents at 12:23 am AEDT.
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