Corrs Chambers Westgarth has advised Stanmore Coal Limited (Stanmore) on its participation in Wiggins Island Coal Export Terminal Expansion Phase 1 (WICET Expansion) and on its recently announced equity and debt funding arrangements with Sprint Capital and Credit Suisse.

Stanmore has committed to an allocation of 5 Mtpa of port capacity in the WICET Expansion, which it will utilise for The Range project in the Surat Basin. The planned capacity for the WICET Expansion is 32.2 Mtpa, which has been allocated to Stanmore and three other coal producers and developers in the Surat and Bowen basins.

Commenting on the WICET Expansion, Stanmore’s Managing Director, Nick Jorss, said:

“Confirmation that The Range has been selected for port and rail allocation is a major milestone for the company. It demonstrates a viable pit to port infrastructure solution to transport 5 million tonnes per annum of export quality thermal coal from The Range to export markets.”

Partners John Kelly and Bruce Adkins, supported by Louise Bell, advised Stanmore on the WICET Expansion.

Stanmore has executed a subscription and cooperation agreement with Greatgroup Investment Limited, an investment vehicle managed by Sprint Capital Partners (HK) Limited, to secure funds totalling $36.04 million which comprises a placement of shares and zero-coupon notes convertible into shares. Sprint Capital is a Hong Kong based private equity investment manager, focused on undertaking investments in the mining and natural resources sector.

Stanmore’s Managing Director, Nick Jorss, said:

“We welcome Sprint Capital as a significant Stanmore Coal shareholder. This agreement places us in a strong position to grow through acquisition and development”.

Stanmore has also entered into a $25m bank guarantee and senior debt facility with Credit Suisse.

The equity and debt funding enable Stanmore to meet its capacity commitment obligations associated with the WICET Expansion and Surat Basin Rail Project and participation in the feasibility study for the Gladstone Rail Capacity Expansion process.

Partners Stephanie Daveson, Jeremy Horwood and Bruce Adkins led the Corrs team on the Sprint placement, and were supported by special counsel Lizzie Knight and Simon Morris. Banking and Finance partner David Beckett led the Corrs team advising on the Credit Suisse Facility.

Corrs partner Bruce Adkins said, “The Corrs team is delighted to have advised Stanmore on its participation in the Wiggins Island Coal Expert Terminal expansion and its debt and equity raisings. These transactions mark the commencement of a transformative period for Stanmore, and we are excited to be working with the company at such a pivotal stage in the development of its Queensland coal assets.”

This follows Corrs recent recognition at the ALB Australasian Law Awards 2012, where the firm won the highest number of overall awards and five deal of the year awards, the most deal awards of any firm – including Energy and Resources Deal of the Year.

The content of this publication is for reference purposes only. It is current at the date of publication. This content does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.