Sprint Capital backs Australian coal miner
Sprint Capital has invested A$36 million ($36.4 million) for a 25% stake in Australian mining company Stanmore Coal. Capital from the Hong Kong-based private equity firm, which specializes in mining and natural resources sector transactions, will go towards Stanmore’s existing projects and infrastructure commitments, and also be used to service debt.
The financing comprises a A$27.01 million placement of 40 million shares priced at A$0.675 per share and a $9.03 million placement of zero-coupon notes convertible into 13.37 million shares, also priced at A$0.675 apiece. The conversion price represents an 87.5% premium to Stanmore's most recent trading price.
"The Stanmore Coal opportunity offers an exciting combination of a great team, quality development assets and access to first-class committed rail and port infrastructure," Chris McAuliffe, managing director of Sprint, said in a statement. "We are delighted to partner with the Stanmore team and look forward to developing their current portfolio and providing support to pursue complementary bolt-on acquisitions of high grade thermal and metallurgical coal projects across Queensland."
Stanmore has a number of coal projects and exploration areas in Queensland's Bowen and Surat Basins. It holds 100% interests in projects covering more than 2,594 square kilometers.
Sprint seeks to invest in resources that are in high demand in China and across Asia, including high-grade thermal and metallurgical coal, oil and gas, iron ore, potash and copper. A scattering of specialist GPs are emerging in Asia with a view to targeting natural resources that fit in with the region's energy demands, at times co-investing with sovereign wealth funds and corporates.
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