Australia’s leading independent law firm, Corrs Chambers Westgarth, has advised Peabody Australia in relation to the recently announced sale of the Wotonga South project to Stanmore Coal.
Peabody Australia will sell the Wotonga South coking coal deposit contained in two mining tenements (MDL 137 and EPC 728) to Stanmore Coal for A$30 million cash plus a production based royalty capped at circa A$10 million.
The Wotonga South deposit has a coal resource of 22.8 million tonnes, and is located 10 kilometres south of Stanmore Coal’s existing coal handling and processing plant at Isaac Plains in Queensland.
Subject to approvals, the acquisition of these mining tenements will provide Stanmore Coal with the right to develop an open cut mining operation with the ability to extract around 15-20 million tonnes of coal and extend the life of the Isaac Plains Complex.
Completion of the transaction is subject to customary conditions precedent.
The Corrs team was led by partner Bruce Adkins and supported by Special Counsel Stuart Clague and Graduate Lawyer Caitlin McPhee.
Corrs partner Bruce Adkins said, “I am honoured to have acted for Peabody Australia on their M&A transactions over a number of years, and delighted to have assisted them once again.”
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