Leading independent law firm Johnson Winter Slattery has advised ASX-listed Bowen Coking Coal (ASX: BCB) on the sale of a 10% stake in the Broadmeadow East Mine to Formosa for A$13M and royalties.
BCB and Formosa are already 90/10 joint venture partners in the Burton-Lenton Joint Venture which owns the neighbouring Burton and Lenton mines. BCB currently owns 100% of the Broadmeadow East mine. The transaction will unify the ownership across the Burton, Lenton and Broadmeadow East mines, with the Broadmeadow East mine to be incorporated into the Burton-Lenton Joint Venture.
The incorporation of the Broadmeadow East mine into the Burton-Lenton Joint Venture allows for increased coal blending options to target specific markets and facilitates a reduction in operational complexity.
BCB is a Queensland based coking coal company which operates the Burton, Broadmeadow East and Bluff metallurgical coal mines, with the Isaac River mine under development and a number of advanced exploration assets.
The Formosa Group is a large diversified multi-national conglomerate headquartered in Taiwan.
The transaction was led by Energy & Resources Partners Bruce Adkins and Stuart Clague.
Stuart commented, “We are delighted to have represented Bowen Coking Coal on a string of transformational transactions which has seen them evolve from explorer / developer to producer in the past 2 years.”
About Johnson Winter Slattery
Johnson Winter Slattery is a leading independent Australian law firm with over 80 partners and 6 offices across Australia. We advise major corporates, funds and governments on their most challenging transactions and disputes.
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