Polo goes it alone as it sells its Mongolian unit
AIM-LISTED miner Polo Resources has finalised the sale of its coal and uranium joint venture in Mongolia, just days after pulling out of a merger with Australian peer Caledon citing volatile market conditions.
Polo has sold its stake in the venture to China-based miner Winsway for $35m (£23.4m), after buying in May 2009 for $25.8m (£17.2m).
Co-chairman Neil Herbert said: “We are pleased to have completed the divestment. Polo is focused on maximising shareholder value through its interests in Extract, GCM and Caledon Resources.”
The firm will receive a one per cent royalty on coal sold from licences currently held in the joint venture, capped at £50m.
Polo announced last week that it would no longer be making an offer to coal producer Caledon, but purchased 11m new shares in the firm and said it “remains a fully supportive shareholder”. The deal was approved by Caledon shareholders at yesterday’s annual general meeting.
Polo has sold its stake in the venture to China-based miner Winsway for $35m (£23.4m), after buying in May 2009 for $25.8m (£17.2m).
Co-chairman Neil Herbert said: “We are pleased to have completed the divestment. Polo is focused on maximising shareholder value through its interests in Extract, GCM and Caledon Resources.”
The firm will receive a one per cent royalty on coal sold from licences currently held in the joint venture, capped at £50m.
Polo announced last week that it would no longer be making an offer to coal producer Caledon, but purchased 11m new shares in the firm and said it “remains a fully supportive shareholder”. The deal was approved by Caledon shareholders at yesterday’s annual general meeting.
Comments
Post a Comment