London Mining Buys International Coal Company
Iron ore firm London Mining has bought the remaining 80 percent stake in the Colombian coking coal business, International Coal Co (ICC) that it did not own in a deal that could cost it as much as $14 million in cash and 9.8 million shares.
The company is to pay $5.5 million in cash and 3.5 million shares immediately but says it might have to pay an additional $8.5 million in cash and up to 6.3 million shares depending on the performance of the Colombian business.
London Mining says it expects capital expenditure of $40 million over the next 18 months and is targetting 250 kilotonnes per annum (KTPA) of coking coal within 18 to 24 months and up to 400 KTPA of coke. The first coke production will be within 12 months.
Shares in London Mining rose in early trading but fell back to 265p, a fall of 0.75p by 1030 BST (0930 GMT).
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