The $13m deal incorporates the Broadmeadow East mine into the Burton-Lenton JV, firm says
Johnson Winter Slattery (JWS) has helped ASX lister Bowen Coking Coal Limited (BCB) to sell a 10% stake in the Broadmeadow East mine to Formosa.
The transaction is valued at $13m, plus royalties. The deal incorporates the Broadmeadow East mine into the Burton-Lenton Joint Venture, in which BCB and Formosa are partners.
The incorporation “provides significant operational flexibilities and efficiencies and a reduction in operational complexity”, JWS said. According to JWS co-lead partner Stuart Clague, the deal “unifies ownership and operating structures across the Broadmeadow East, Burton and Lenton mining areas”.
JWS’ team assisted BCB on the navigation of the deal’s novel structural elements in light of the complexity of BCB’s current corporate financing, royalty, and associated security arrangements. JWS collaborated closely with a team from Gilbert + Tobin, which acted as BCB’s legal advisers on the finance aspects of the deal.
Clague took the lead in working on the transaction alongside fellow energy and resources partner Bruce Adkins. Special counsel Tom Barrett and Megan Coall provided support, as did associate Karen Zhu.
BCB’s flagship is the Burton Mining Complex, in which it holds a 90% stake. The complex includes the Ellensfield South and Broadmeadow East Mines. Taiwan-headquartered Formosa Group has a 10% interest in the Burton-Lenton Joint Venture.
