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Company takes major stake of Bowen Basin’s mineral resources

Company takes major stake of Bowen Basin’s mineral resources

Private equity-backed Pembroke Resources has expanded its metallurgical coal portfolio with the acquisition of assets in Queensland’s Bowen Basin.

Firms: King & Wood Mallesons (Pembroke Resources); Corrs (Peabody Energy and CITIC Resources Holdings Ltd)

Deal: Pembroke Resources has acquired interests in metallurgical coal tenements from Peabody Energy and CITIC Resources.

Value: $120 million

Area: M&A/Banking and finance

Key players: The King & Wood Mallesons team advising Pembroke Resources included M&A partners Mark McNamara (pictured) and Paul Schroder, mining and native title partner Scott Singleton, insolvency partner Tim Klineberg, tax partner Katrina Parkyn and special counsel Leah Ranie. They were supported by senior associates Rob McEvoy and Ryan Gawrych and solicitors Tom Kibble and Samantha Barrett.

Deal significance: Pembroke Resources is an Australia-based company focused on the acquisition and development of a portfolio of high-quality, metallurgical coal assets in the Asia-Pacific region. The company is backed by resources and energy-focused global private equity firm Denham Capital.

Pembroke Resources has acquired a large share of interests in metallurgical coal tenements from various Australian subsidiaries of Peabody Energy and CITIC Resources for $120 million plus an agreed royalty.

The acquired interests encompass an area known as the Olive Downs Complex located in Queensland’s Bowen Basin. The Olive Downs Complex includes Olive Downs North (ODN) and Olive Downs South (ODS), Willunga.

As part of the deal, Pembroke Resources has acquired rights to four exploration permits for coal and two mine leases, both for ODN. Subject to the approval of the minority partners, Pembroke has agreed to acquire an 87.3 per cent interest in ODN. Pembroke has also acquired a 100 per cent interest in ODS and Willunga.

King & Wood Malleson’s head of private equity, Mark McNamara, said the firm’s advice to Pembroke Resources was part of an ongoing relationship with the company.

"KWM is delighted to have assisted Pembroke on this acquisition having worked on the establishment of Pembroke with Denham Capital in 2014," Mr McNamara said.  

"We are encouraged to see PE-backed groups supporting the Australian resources sector at a time when other traditional capital sources for the sector have retreated."

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