Corrs Chambers Westgarth has advised Peabody Energy Australia and CITIC Resources Australia in relation to their recently announced transactions to sell their interests in the Olive Downs South, Olive Downs South Extended and Willunga projects as well as their interests in the Olive Downs North project to Pembroke Resources. Australian-based Pembroke Resources is a portfolio company of leading energy and resources-focused global private equity firm Denham Capital.
The Olive Downs South, Olive Downs South Extended, Willunga and Olive Downs North projects are undeveloped metallurgical coal assets located in Queensland’s Bowen Basin.
Pembroke will acquire Peabody Energy Australia and CITIC Resources Australia’s interests in the projects for a combined purchase price of A$120 million plus a royalty stream.
Completion of the Olive Downs South, Olive Downs South Extended and Willunga transaction has occurred. Completion of the Olive Downs North transaction is subject to certain conditions precedent being met, including approval by the other participants in the Coppabella and Moorvale Joint Venture.
The Corrs team was led by partner Bruce Adkins and supported by Special Counsel Stuart Clague and Lawyer Ben Pattison. The Corrs team worked closely with the Peabody in-house team, which included Mark Vale.
“The Corrs team is delighted to have worked with Peabody and CITIC on this significant transaction. Despite all the doom and gloom surrounding the Australian coal sector right now, this and other recent transactions demonstrate that quality Australian coal assets continue to be in demand.” Bruce Adkins said.
Pembroke Resources was represented by King & Wood Mallesons.
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