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Stanmore's BMC buy unconditional

24th February 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Coal miner Stanmore Coal on Thursday reported that its purchase of an 80% interest in the BMC metallurgical coal joint venture (JV) in Queensland, has been declared unconditional.

Under the agreement, Stanmore will acquire 100% of Dampier Coal from diversified miner BHP, which holds its interest in BMC for $1.35-billion. The purchase price comprises $1.1-billion cash on completion, $100-million in cash six months after completion and the potential for up to $150-million in a price-linked earnout payable in the 2024 calendar year.

Stanmore told shareholders on Thursday that the two outstanding conditions precedent to the acquisition have now been satisfied, including foreign merger clearance.

The sale of BMC is targeted for completion in the middle of 2022, and BHP will continue to operate the assets until the completion of the transaction, and would work with Stanmore to ensure a successful transition of ownership.

Edited by Creamer Media Reporter

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