Felix Resources’ shareholders would receive A$16.95 per share in cash and dividends of A$1.00 per share from Yanzhou. Felix shareholders would also receive an in-specie distribution of shares with a cash backing of A$0.05 per share in Felix’s subsidiary South Australian Coal Corporation (SACC) that owns 100% of the Lake Phillipson exploration projects which include a coal deposit and is also prospective for other minerals.
Yanzhou would provide funding capacity for the development of the Moolarben project. Yanzhou would develop the Felix’s Moolarben project and focus on funding and growing Felix’s exploration program in Australia, including the Athena, Wilpeena and Harrybrandt projects. This transaction is subject to regulatory approvals and other conditions including the spin-off by Felix of SACC.
The completion of the transaction is subjected to the approval by regulatory authorities in Australia and the People’s Republic of China (PRC). Yanzhou informed that the Offer would be financed from its existing cash resources and bank debt.
Felix operates as an independent coal producer with four operating mines and exploration interests in New South Wales and Queensland. The company produces PCI, semi-soft coking and thermal coals, and is a party to the Newcastle Coal Infrastructure Group (NCIG). The company exports its products to Japan, South Korea, Taiwan, China and India.
