Home » Posts tagged 'Knurów-Szczygłowice mine'
Tag Archives: Knurów-Szczygłowice mine
Prairie Mining #PDZ – Update Statement Regarding Possible Co-Operation between Prairie Mining and JSW
Prairie Mining Limited (“Prairie”) and Jastrzębska Spółka Węglowa SA (“JSW”) have signed an extension to the Non-Disclosure Agreement (“NDA”) originally announced on 28 March 2018, extending the term of the NDA for an additional 6 months with the term of the NDA ending on 28 September 2019, for the purposes of continuing discussions.
JSW has confirmed that its has now completed its initial Due Diligence process on Prairie and Prairie’s assets. As previously confirmed, JSW’s Due Diligence at the Jan Karski project has confirmed that part of the “Lublin” deposit contains semi-soft coking coal (type 34), which can be potentially utilised by JSW. JSW’s Due Diligence has also indicated the technical feasibility and potential synergies of accessing initial seams at the Dębieńsko deposit utilising the existing infrastructure at JSW’s adjacent Knurów-Szczygłowice mine. Exploiting those synergies would require modifications to project configuration and obtaining relevant approvals, including concession modifications. JSW estimates that access via the Szczygłowice mine potentially enables the production of hard coking coal (type 35) from Dębieńsko in up to 18 months from the time that relevant administrative permits and concession amendments are granted.
Whilst both parties need more time to discuss a deal structure and commercial terms, it is the intention of both parties to continue negotiations over the coming months, with areas to be covered including:
1) Potential deal structure and commercial terms for any co-operation or transaction;
2) Adaption of mine plans for both Debiensko and Jan Karski to align with JSW’s development concepts and maximise potential synergies.
There can be no certainty as to whether any transaction(s) or co-operation will be agreed, or the potential form of such transaction(s) or co-operation.
It is emphasised that any potential transaction(s), should they occur, may be subject to a number of conditions including, but not limited to, obtaining necessary corporate approvals, consents and approvals related to funding, consents from Poland’s Office of Competition and Consumer Protection (UOKiK) if required, and any other requirements that may relate to the strategy, objectives and regulatory regimes applicable to the respective issuers.
For the avoidance of doubt, this announcement is without prejudice to Prairie’s service of a notice of an investment dispute to the Republic of Poland. Prairie will continue to enforce its rights under all applicable domestic and international laws.
Prairie will continue to comply with its disclosure obligations with the relevant markets, as required.
For further information, please contact:
Prairie Mining Limited
Tel: +44 207 478 3900
Ben Stoikovich, Chief Executive Officer
Sapan Ghai, Head of Corporate Development
Discussions remain ongoing between Prairie Mining Limited (” Prairie “) and Jastrzębska Spółka Węglowa SA (” JSW “) regarding the potential for co-operation and the implementation of the next six weeks months.
The Due Diligence process at Jan Karski project has confirmed that part of the “Lublin” deposit contains a semi-soft coking coal (type 34), which can be potentially utilised by JSW. The JSW’s adjacent Knurów-Szczygłowice mine. Exploiting those synergies would require modifications. JSW estimates that access via the Szczygłowice mine potentially enables the implementation of legal permits and concession amendments are granted.
There can be no surety transaction (s) or co-operation will be agreed, or the co-operation.
It is underlined that any potential transaction (s), should not occur, is required for funding, Consents and Consents. Protection (UOKiK) if required, and any other requirements that may relate to the strategy, objectives and regulatory regimes.
The companies will continue to comply with the relevant markets, as required.
Common position on establishing potential cooperation between Prairie Mining and JSW
Prairie Mining Limited (” Prairie “) and Jastrzębska Spółka Węglowa SA (” JSW “) are continuing the discussion on potential cooperation or transactions regarding Prairie coal projects in Poland. The talks follow the six-month stage of technical information exchange.
As a result of the project study, Jan Karski confirmed that part of the “Lublin” deposit contains type 34 (semi-soft) gas-coking coal, which could potentially be used by JSW. The study also confirmed the technical possibilities and potential synergies associated with the availability of coal seams from the Dębieńsko deposit using the infrastructure of the neighboring Knurów-Szczygłowice mine. The use of these synergies would involve the necessity to modify the technical conditions of the undertaking and obtain the necessary changes in administrative decisions, including concession decisions. According to JSW, the Szczygłowice Movement infrastructure potentially enables the extraction of type 35 ortho-coke coal from the Dębieńsko deposit seams within 18 months of obtaining the required administrative decisions and changing the concession.
There is no certainty that the talks will lead to the conclusion of any contract (s), and there is no certainty as to the form of any transaction (s).
It should be emphasised that the potential transaction or transactions, if it occurs, may depend on meeting a number of standard conditions, including: obtaining positive assessments and expert opinions, necessary corporate approvals, approvals and approvals regarding financing, consents of the Competition Office and Consumers (UOKiK), if they are required, and fulfilment of any other requirements related to the strategy, objectives and regulations applicable to each issuer.
The companies will comply with their obligations to provide the required information to the markets