Western Canadian Coal has entered into a definitive agreement to acquire UK-based Cambrian Mining in a C$120m (£67.4m) all-stock deal to financially strengthen and diversify Western’s business model.
Cambrian has a 34% interest in Western and a C$29m ownership of Western's convertible debentures. It has also played a key role in developing Western’s mines and bringing them to operation.
Western will issue 0.75 of its common shares for each share of Cambrian.
Western will acquire total ownership of Cambrian’s metallurgical and thermal coal mines in West Virginia and 50.6% in a UK thermal coal mine. In addition, it will also acquire 45.3% of Xtract Energy and 100% of AGD Mining.
In a statement, Western the said the partnership will create a stronger company with coal mines in Western Canada, West Virginia and the UK, doubling its coal production to 3.5 million tonnes per annum.
By staff writer