Polo Resources to sell its 50 per cent interest in Mongolian joint venture
TORONTO - Polo Resources Ltd. (TSX:POL) says it will sell its 50 per cent interest in a joint venture company, receiving about US$35 million plus royalties for its Mongolian coal and uranium assets.
The company announced Tuesday that its holdings in joint venture operation Peabody Energy Corp. (NYSE:BTU) will transfer to Winsway Coking Coal Holdings Ltd.
Winsway will first pay a non-refundable US$1.75 million to Polo by Thursday, which will extend an exclusivity agreement to July 20.
From there, the initial payment will become part of a $15 million cash payment, which will be followed by another $20 million payment within 12 months.
Polo will also get a one-per cent royalty for coal sold from licences currently held in the joint venture, up to $50 million. The agreement would last for as long as 25 years, it said.
"We are pleased to be executing the divestment of our non-core holding in the joint venture in Mongolia," said executive co-chairman Neil Herbert in a release.
25/05/2010 8:44 AM
The company announced Tuesday that its holdings in joint venture operation Peabody Energy Corp. (NYSE:BTU) will transfer to Winsway Coking Coal Holdings Ltd.
Winsway will first pay a non-refundable US$1.75 million to Polo by Thursday, which will extend an exclusivity agreement to July 20.
From there, the initial payment will become part of a $15 million cash payment, which will be followed by another $20 million payment within 12 months.
Polo will also get a one-per cent royalty for coal sold from licences currently held in the joint venture, up to $50 million. The agreement would last for as long as 25 years, it said.
"We are pleased to be executing the divestment of our non-core holding in the joint venture in Mongolia," said executive co-chairman Neil Herbert in a release.
25/05/2010 8:44 AM
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