The company received a further payment of $1.2m from Sumitomo, representing the outstanding balance of the Phase 1 Farm-in amount of $2.5m
Sumitomo elects to proceed to Hillalong Joint Venture. (Credit: Gerd Altmann from Pixabay)
vBowen Coking Coal is pleased to provide an update on the Farm-In Agreement (“Agreement”) on the Hillalong Coking Coal Project (“Hillalong”), with SCAP Hillalong Pty Ltd, a wholly owned subsidiary of the Japanese Conglomerate, Sumitomo Corporation (“Sumitomo”) as announced on 18 November 2019.
On the 29 April 2020, the Company received a further payment of $1.2m (including GST)
from Sumitomo, representing the outstanding balance of the Phase 1 Farm-in amount of
$2.5m.
Under the Agreement, Sumitomo had 20 working days after the final payment (referred
to above) to exercise their right to take up the 10% interest in the BCB managed Joint
Venture. Pleasingly, the Company can confirm that it received correspondence from
Sumitmo, after the close business on Friday, 1 May 2020, whereby Sumitomo have
already formally exercised their right to take up that 10% interest, and therefore BCB and Sumitomo will now proceed to enter into a formal Joint Venture Agreement.
Commenting on the latest developments, the Company’s Managing Director, Mr Gerhard
Redelinghuys said, “We are extremely pleased with the move towards a Joint Venture with a very capable partner like Sumitomo. Not only does it demonstrate confidence in
Hillalong’s potential, but it also formalises the relationship to achieve the future
milestones in the development of the project.”
Source: Company Press Release