ASX-listed Bowen Coking Coal (BCB) has completed the previously announced sale of a 10% interest in the Broadmeadow East mine for A$13-million in cash and royalties.
MPC Lenton, a subsidiary of Taiwan-headquartered Formosa Plastics Group, acquired the stake to facilitate the Broadmeadow East mine being incorporated into the Lenton joint venture (JV).
BCB and Formosa are 90:10 JV partners in the Lenton JV, which owns the neighbouring Burton mine and Lenton project.
“The unification of ownership and operating structures for the Broadmeadow East mine, the Burton mine and the planned Lenton Coal project provides BCB and MPC with significant operational flexibilities and efficiencies. It is satisfying to see this transaction successfully concluded,” said BCB CEO Daryl Edwards.
Consistent with BCB’s senior debt facility documentation, Bowen intends to use $7-million of the sale proceeds to repay a portion of the Taurus facility. When BCB does so, it will reduce the principal debt balance of the Taurus facility from $51-million to $44-million and the final debt repayment will be reduced accordingly.
