White Mining’s assets include an 80% stake in the Ashton open cut mine in the Hunter Valley and 100% of the Moolarben coal development project near Mudgee in New South Wales. It also holds an exploration project adjacent to the Coppabella mine in Queensland, and a technology for producing ultra-clean coal.
Ashton is ramping up to 1.6 million tonnes per annum of semi-soft coking sales from this month (and a 2.1Mtpa underground development from 2007), while Moolarben is being pitched as a 4Mtpa thermal coal open cut producer in 2007 ahead of a 3Mtpa underground longwall in 2009.
Currently Felix owns the Yarrabee open cut mine where production of 1.7Mtpa is being targeted from 2005, and the 2.5Mtpa Minerva mine development project (from January 2006).
In total, the deal with White Mining will see Felix with potential coal sales under its control of around 8Mtpa by 2007 and 15Mtpa by 2010 – of which it will have a direct equity interest in of around 13.5Mtpa.
Vendor consideration is 82 million ordinary shares and 7.5 million so-called Class A and B shares, the latter of which will convert to ordinary shares should Felix’s share price exceed hurdle levels of $3-3.50/share.
The deal will see Felix having total issued shares of just under 160 million shares, plus around 17 million options.
AWR Lloyd advised Felix on the acquisition.
