- Coal producer TerraCom (TER) has finalised the sale of its Mongolian assets to Bridge Resources, fully divesting from the region in the process
- Bridge Resources purchased the Baruun Noyon Uul and Enkhtunkh Orchon coal mines from TerraCom, along with a number of associated legal entities
- As part of the purchase, Bridge Resources assumed US$28 million (around A$40.94 million) in current asset liabilities and paid TerraCom a total consideration of just US$3 (roughly A$4.39)
- With the sale now finalised, TerraCom will shift focus to its flagship Blair Athol Coal Mine in Australia and its newly acquired assets in South Africa
- TerraCom shares are grey at market open, trading for 18 cents per share
Coal producer TerraCom Resources (TER) has finalised the sale of its Mongolian assets to Bridge Resources, fully divesting from the region in the process.
Bridge Resources purchased the Baruun Noyon Uul Coal Mine and the Enkhtunkh Orchon Coal Mine from TerraCom, along with a number of associated legal entities.
As part of the purchase, Bridge Resources assumed US$28 million (around A$40.94 million) in current asset liabilities and paid TerraCom a total consideration of just US$3 (roughly A$40.94 million).
Previously, TerraCom stated its aim was to become one of the largest and highest-quality coking coal producers in Mongolia but has since change direction and has chosen to leave the region entirely.
Deputy Chairman Craig Ransley commented on the sale and the company’s relationship with Bridge Resources in the region.
“TerraCom is pleased to have worked with Bridge Resources on this transaction and looks forward to a mutually prosperous working relationship between the parties in the future,” he said.
Bridge Resources Director, Cun Liu, also commented on the sale, stating the company was looking forward to working with the current team in Mongolia.
Cun also said he expects the transition from TerraCom to Bridge Resources to be smooth, given its previous knowledge of the asset and its existing relationship with TerraCom.
With the sale now finalised, TerraCom will shift focus to its Australian assets, which include the company’s flagship Blair Athol coal mine and five coal projects based in Queensland.
TerraCom will also focus on its new South African assets, which TerraCom acquired after assuming control of Universal Coal’s operations through a share buyout earlier this year.
TerraCom shares are grey at market open, trading for 18 cents per share at 10:51 am AEST.