M Resources is pleased to announce that JSW Steel Limited (“JSW”) has executed binding agreements to acquire an additional economic interest in M Res NSW HCC Pty Ltd (“M Res NSW”) for aggregate consideration of US$60 million:
Under the transaction, JSW shall:
- Purchase non-voting Class B shares in M Res NSW from an entity owned by M Resources for consideration of US$ 24 million representing a 4% economic interest in Golden M NSW Pty Ltd (“Golden M”). Golden M through its subsidiary owns 100% of Illawarra Coal Holdings Pty Ltd (“Illawarra Metallurgical Coal”)
- Subscribe for additional non-voting Class B shares to be issued by M Res NSW for consideration of US$ 36 million, which will be used by M Res NSW to purchase an additional 6% shareholding in Golden M from an entity owned by Golden Energy and Resources (“GEAR”).
These transactions increase JSW’s economic interest in M Res NSW to 83.33% (from 66.67% currently). These transactions will also increase M Res NSW’s shareholding in Golden M to 36% (from 30% currently).
Statement from Leadership:
M Resources Founder and President Matt Latimore said, “We are pleased to announce this further commitment from JSW Steel, one of the world’s largest steel mills, to the Illawarra and to Australia’s high quality metallurgical coal.”
“JSW understands the strategic nature of the Illawarra in the global seaborne metallurgical coal market and these transactions allow Illawarra Metallurgical Coal the opportunity to play a greater part in that vision.”
“The partnership structure enables M Resources to continue to benefit from the asset’s performance while providing JSW with the security of an increased economic interest, which is aligned with their strategic growth objectives.
“We look forward to our continued partnership with JSW and exploring additional opportunities where our combined capabilities can create mutual value. This transaction demonstrates the strength of the relationship between M Resources and JSW and our shared commitment to responsible investment and operational excellence.”
