APC to acquire 100% interest in Dartbrook JV

JOHANNESBURG (miningweekly.com) – After acquiring an 83.33% stake in the New South Wales-based Dartbrook joint venture (JV) in December last year from diversified miner Anglo American, and in April securing A$5-million in funding from cornerstone investor Trepang Services for the remaining 16.67% interest from Marubeni Coal, ASX-listed junior Australia Pacific Coal (APC) on Wednesday announced that it was officially moving ahead to acquire a 100% interest in the project.

Under the initial JV agreement between Anglo and Marubeni, Marubeni had the right to ‘tag’ and sell its interest to APC, and Marubeni had now decided to exercise its tag-along right for the sale of its interest in Dartbrook.

The Marubeni acquisition would include a A$5-million cash payment – of which a deposit of A$100 000 was payable on execution of the formal documentation – and a royalty of A$0.50/t of coal sold or otherwise disposed of from the project. Royalties would also include A$0.05/t of any third-party coal processed through Dartbrook infrastructure, though this was capped at A$5-million.

APC and Anglo also agreed to revise the rate on the royalty payable to Anglo, as part of the acquisition of its interest, from A$3/t to A$2.50/t.

APC CEO John Robinson welcomed Marubeni’s decision to sell its minority interest in the project. "Holding 100% of what we believe is an outstanding mining asset with existing infrastructure in place, will allow the company to expedite its plans to progress the asset for the benefit of shareholders and the local community alike,” he said.

The parties were currently finalising formal documentation for the tag-alone sale and a final agreement, which would conclude the sale of both Anglo and Marubeni’s interests in the JV, was expected in the coming weeks.
The Dartbrook mine was currently under care and maintenance, after ceasing production at the start of 2007, and APC was working to restart underground operations at Dartbrook as soon as possible.