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GPW: Common position on establishing potential cooperation between Prairie Mining and JSW
The Management Board of Jastrzębska Spółka Węglowa S.A. _ “JSW”, “Company” _ informs that on October 10, 2018, JSW continued its discussion with Prairie Mining Limited “Prairie” regarding potential cooperation or transactions regarding Prairie coal projects in Poland. The conversations take place after the six-month stage of technical information exchange – which the Company informed in the current report No. 11 / 2018_.
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 can 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 coal mining from the Dębieńsko deposit to 500,000. tons of 35 type ortho-coke coal per year, 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, nor is there any certainty as to the form of any transactions.
It should be emphasized 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 _UOKiK_ Consumers, if they are required, and fulfillment 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.
Prairie Mining #PDZ – JSW coal eyes making decision on Prairie assets in July, could seek USD financing for further capex – PAP Biznes
Article by PAP Biznes
Listed coking coal miner JSW is in the midst of talks with coal miner Prairie Mining regarding potential investment in Prairie assets and might seek USD financing for capex projects related to Prairie assets if a positive decision is taken in July, CEO Daniel Ozon told PAP.
“Some talks with Prairie Mining have been conducted, further ones are scheduled for June,” Ozon said. “I would like us to make some decisions in July.”
“Those assets would generate for us 2-2.5 mln tons of coal annually,” he said.
JSW options include taking over Prairie Mining as a whole, or particular assets, because mining licenses belong to subsidiaries, not the firm itself. While all the assets are in play, the Lubelskie region projects are “remote, complicated.”
To finance the Prairie-related spending, JSW could seek financing on the US market, possibly a USD 500 mln benchmark bond issue, but first needs to complete the process of securing a debt rating.
“We could finance the transaction itself with cash, but further capex for example for a new shaft and the processing plant could be estimated at several billion zloty,” the CEO said.
“If we finish process with [rating] agencies … and the situation on the market is still good, then one can imagine that after H1 results we could go out with an issue of possibly benchmark size of some USD 500 mln,” he said.
Elsewhere in financing, JSW is in advanced talks with Polish banks on PLN 1 bln in refinancing.
‘We are quite advanced with closing deals with banks on refinancing,” the official said. “We are targeting neighborhood PLN 1 bln, we are talking here about a consortial loan.”