Joint Update Statement Regarding Possible Co-Operation between Prairie Mining and JSW
Prairie Mining Limited (“Prairie”) and Jastrzębska Spółka Węglowa SA (“JSW”) have entered into a Non-Disclosure Agreement (“NDA”) following Prairie’s approach to JSW with respect to potential co-operation regarding Prairie’s Polish coal projects. The purpose of the NDA is to allow for the exchange of technical and commercial information in order to facilitate substantial and more advanced discussions regarding any potential transaction(s) options in respect of Prairie’s projects.
Prairie will make available information in relation to the hard coking coal project under the Debiensko-1 concession granted in 2008, to allow JSW to conduct an assessment of its feasibility and economics, taking into consideration factors including, but not limited to: its stage of development, conditions of the mining concession, environmental permits, and the mining usufruct contract. JSW will also assess other various risks and opportunities, including JSW’s existing infrastructure at the neighbouring Knurów-Szczygłowice mine.
Prairie will make available information in relation to the Jan Karski project in the Lublin Coal Basin, to allow JSW to conduct an assessment of the project’s feasibility and economics with regard coking coal, taking into consideration factors including, but not limited to: its phase of development, the physical and chemical parameters of the coal (in particular its coking parameters), the timeframe and conditions with regards to obligations to obtain a mining concession, as well as other various risks and opportunities.
It is emphasised that discussions are at a preliminary stage and that even if they move onto discussions of specific transactions terms, any potential transaction(s), should they occur, may be subject to a number of conditions including, but not limited to, obtaining positive evaluations and expert opinions, 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.
There can be no certainty as to whether any transaction(s) will be agreed, or the potential form of such transaction(s).
The NDA provides for discussions to be conducted for an initial period up to 6 months, which may be extended by mutual agreement of both parties. The companies will continue to comply with their respective disclosure obligations to the relevant markets, as required.
Prairie Mining LTD (ASX,AIM,WSE:PDZ) CEO Ben Stoikovich
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