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Canadian company to acquire stake in Hunter Valley project

Canadian company to acquire stake in Hunter Valley project

acquisition, puzzle piece

Corrs Chambers Westgarth has advised a Canadian-headquartered in relation to the establishment of the Dartbrook Mine, located in the Hunter Valley.

Firm: Corrs Chambers Westgarth (Stella Natural Resources) 

Deal: Stella Natural Resources Inc (SNR) has been advised in relation to the recently announced agreement with Australian Pacific Coal Limited (AQC) to establish the Dartbrook Mine incorporated joint venture.

Under the agreement, SNR will acquire a 50 per cent interest in the Dartbrook project, and SNR and AQC will establish the Dartbrook joint venture to develop and operate the mine.

Value: $20 million

Area: Mining, finance

Key players: The Corrs team was led by partner Bruce Adkins, with assistance from special counsel Stuart Clague and lawyer Caitlin McPhee.

Deal significance: Dartbrook is located in NSW’s Hunter Valley and has infrastructure already in place, including a coal handling and processing plant, as well as train load out facilities.

According to a statement from Corrs, the Dartbrook project is currently on care and maintenance, however, the parties intend to recommence coal production in 2019. SNR will be appointed manager for the recommencement and operations of the underground mine, and will be responsible for obtaining all required funding for the life of the operation.

The transaction is subject to various conditions with completion expected in the first quarter of 2019, the firm noted.

“We are pleased to act for SNR on its joint venture with AQC, and we look forward to assisting SNR and AQC implement their plans to restart the Dartbrook underground mine and achieve first coal during 2019," said Corrs partner Bruce Adkins.

Meanwhile, David Stone, CEO of Stella Natural Resources said: “For SNR, Dartbrook is the entry operation into the Australian coal sector after the successful integration of our US assets and we look forward to expanding our footprint as we successfully implement.”

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