Stanmore will also assume all obligations associated with potential contingent royalty payments to Vale Australia Holdings Pty Ltd associated with the transfer, applied to 50% of all future coal sales revenues capped at US$80 million and subject to minimum coal price thresholds being achieved.
The other 50% interest in the project is held by Aquila Coal Pty Ltd (“Aquila”), a subsidiary of China Baowu Steel Group Corporation Limited (“Baowu”).
Stanmore has been engaging in positive discussions with Aquila in relation to the joint venture as outlined further below. Stanmore will be the manager of the JV through its 100% ownership in EDCM.
Stanmore will fund the Upfront Consideration with existing liquidity.The Transaction follows an extensive due diligence process undertaken by Stanmore with the assistance of external legal and technical advisers.
Completion of the Transaction is expected by the end of 2Q 2024, following the satisfaction of certain limited conditions precedent, including but not limited to Foreign Investment Review Board (“FIRB”) approval, certain third-party consents and Stanmore acquiring the shares in EDCM.
Transaction OverviewConsideration payable to South32 in connection with the Transaction comprises:US$15 million payable in cash upon Completion ("Upfront Consideration");US$20 million payable upon first 100Kt of coal being mined from longwall mining methods ("Deferred Consideration"); andA capped royalty of up to approximately US$100 million payable in the future linked to average coal index price thresholds (”Royalty”).
I think they will actually make money out of this and save on costs associated with any upgrades & upramps.
Im more interested in what the Supreme court case is all about.
For the life of me i can not find anything pertaining to specifics.
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