Leading independent law firm Johnson Winter Slattery (JWS) has advised ASX-listed Bowen Coking Coal Limited (ASX: BCB) on the sale of a 10 per cent stake in the Broadmeadow East mine to Formosa for A$13 million plus royalties.
BCB and Formosa are joint venture partners in the Burton-Lenton Joint Venture which owns the Burton Mining Complex. The transaction incorporates the Broadmeadow East mine into the Burton-Lenton Joint Venture and unifies the ownership and operations across the Burton, Lenton and Broadmeadow East mining areas.
JWS assisted BCB in navigating the novel structural elements of this transaction through the complexity of BCB’s existing corporate financing, royalty and related security arrangements. JWS worked closely with Gilbert + Tobin – BCB’s finance lawyers – on this transaction.
The incorporation of the Broadmeadow East mine into the Burton-Lenton Joint Venture provides significant operational flexibilities and efficiencies and a reduction in operational complexity.
The transaction was led by Energy & Resources Partners Bruce Adkins and Stuart Clague and Special Counsel Tom Barrett, with assistance from Special Counsel Megan Coall and Associate Karen Zhu.
Stuart commented, “We are delighted to have acted for Bowen Coking Coal on a string of transformational transactions, including this important transaction which unifies ownership and operating structures across the Broadmeadow East, Burton and Lenton mining areas.”
BCB has established a key, strategic, hard coking coal position in Queensland’s world class Bowen Basin. BCB’s flagship Burton Mine Complex (90 per cent owned) near Moranbah encompasses multiple operations with the Ellensfield South and Broadmeadow East Mines serving a co-located Coal Handling and Preparation Plant and train load out facility connected by a haul road.
The Formosa Group (10 per cent ownership of the Burton-Lenton Joint Venture) is a large diversified multi-national conglomerate headquartered in Taiwan.
JWS is a leading independent Australian law firm of more than 450 people, including 85+ partners. The firm is engaged by major corporates and investment funds on their most challenging transactions and disputes.
Angela Welsh, Marketing & Communications Manager T: +61 2 9392 7454 | M: +61 414 281 902 E: angela.welsh@jws.com.au
Maureen Grose, Marketing & Business Development Director T: +61 2 8247 9697 | M: +61 447 004 445 E: maureen.grose@jws.com.au