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Phoenix Coal pays $46m for mines

NZ Newswire logoNZ Newswire 2/11/2016 Edwin Mitson

The Bathurst Resources and Talley's Group joint venture, Phoenix Coal, is to pay $46 million to buy Solid Energy's Stockton, Rotowaro and Maramarua Mines.

The sale of the former state-owned enterprise's assets was confirmed on Monday, with ASX-listed Bathurst now setting out details of the transaction as it seeks to raise capital for the transaction from investors.

Phoenix Coal has also agreed to a semi-annual payment based on revenue from coal sold from the Stockton Mine, which will only apply if coal prices rise above $150 per tonne.

This structure will be in place for four years and the maximum that will be paid out over that period is $50m.

The joint venture's funds include $14m from Talley's Group for a 35 per cent stake, $26m from Bathurst Resources for a 65 per cent stake and a $15m debt facility from lender Bank of New Zealand.

This will meet the $46m purchase price and ensure $9m for working capital and bonds.

The sale is conditional on gaining approval from the Overseas Investment Office.

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