- Resources outfit TerraCom (TER) has executed phase one of its exit from its Mongolian coal exploits, selling the Baruun Noyon Uul Coal Mine
- The company has completed a binding term sheet to sell the mine and handballed the associated debt to Singapore-based Bridge Resources for just US$2
- TerraCom is also looking to sell coal subsidiary Enktunkh Orchlon, which would see them exit from Mongolia completely
- Its exit from Asia means the company can clean up its liabilities and shift its focus to existing projects in Australia and South Africa
- TerraCom is currently in a trading halt, where its shares were last trading at 12 cents each
Resources outfit TerraCom (TER) has executed phase one of its exit from its Mongolian coal exploits, selling the Baruun Noyon Uul (BNU) Coal Mine.
The company executed a binding term sheet for the outright sale of the mine and handballed the associated debt to Singapore-based Bridge Resources for just US$2.
Bridge Resources already has an interest in BNU and is well versed in doing business in Mongolia. The company has said they’ll also keep the current key management personnel.
The sale of BNU is the first step in TerraCom wrapping up its coal dealings in Mongolia, and company chairman Wal King said they will begin focussing more on their existing projects outside Asia.
“The divestment will relieve the Company’s balance sheet of US$15 million of current liabilities and will enable TerraCom to continue its transition to a profitable major global thermal coal producer, with a clear focus now on the Company’s Blair Athol Mine in Queensland and the more recently acquired Universal Coal Mines in South Africa,” Wal said.
TerraCom is currently in negotiations to divest coal subsidiary Enktunkh Orchlon, which if successful would see it exit Mongolia completely.
The company hopes the deal to sell BNU to Bridge Resources will be completed by June 5.
TerraCom is currently in a trading halt, where its shares were last trading at 12 cents each.