McCullough Robertson has successfully assisted long term client, Stanmore Resources Limited in its 100% interest acquisition of the Eagle Downs Joint Venture.

Stanmore Resources is one of Australia’s largest suppliers of metallurgical coals to global markets with three major coal-producing assets, including the South Walker Creek, Poitrel and Isaac Plains Complex coal mines.

The transaction to acquire a 100% interest in the project was completed in two separate parts, wherein a 50% interest was obtained from each of the two participants in the Eagle Downs Joint Venture, South32 and Aquila Coal.

Our team was engaged by the client to conduct due diligence and negotiate transaction documents for the 50% interest acquisition of the joint venture from South32. This process involved the negotiation of several key agreements, including a sale and purchase agreement, royalty deeds, joint venture assumption deeds, and the assumption of existing royalty rights to Vale Australia Holdings.

Following the successful execution for the South32 transaction, the client further engaged our team to enter into binding transaction documents for the acquisition of the remaining 50% interest in the Eagle Downs Joint Venture from Aquila Coal Pty Ltd. Additionally, we were tasked with securing a 100% interest in the adjacent Eagle Downs South project from Aquila Coal’s related entity, Aquila Exploration Pty Ltd.

With Stanmore negotiating separate transactions with South32 and Aquila at the same time, we were able to provide strategic advice on how each transaction would impact the other, as well as to manage the requests (both legal and commercial) of each respective seller.

Lead partner Meg Morgan comments “Our deep understanding of our client’s commercial drivers and risks allowed us to work efficiently and effectively, ensuring a timely completion of both transactions. Congratulations to the team at Stanmore”.