Polo To Sell Stake In Mongolian JV
Polo Resources is to sell its 50 per cent interest in its Mongolian joint venture with Peabody Energy to Winsway Coking Coal Holdings for the sale of Polo's 50% interest
The JV was formed to hold all of Polo's coal and uranium assets in Mongolia.
Winsway will pay a non-refundable deposit of $1.75m to Polo, which has granted exclusivity to July 20.
Polo chairman Neil Herbert said, 'We are pleased to be executing the divestment of our non-core holding in the joint venture in Mongolia.
'Polo is focused on maximising shareholder value through its uranium and coal interests in Extract Resources Limited, GCM Resources plc and Caledon Resources plc and currently has approximately $23m in cash.'
Polo, Peabody and Winsway will negotiate the terms of a sale of Polo's interests in the JV for $15m in cash, including the deposit, and $20m payable within 12 months.
In addition Polo will receive a 1% royalty for coal sold from the licences.