Centennial Completes Sale of Anvil Hill
Thursday, October 18th, 2007
The Directors of Centennial Coal Company Limited are pleased to advise that Centennial has completed the sale of its Anvil Hill Project to Xstrata Coal Australia Pty Ltd.
Centennial received $454.3 million cash at completion, which included $53.8 million of adjustments. An additional $25 million of deferred consideration will be payable to Centennial when remaining project transitional issues are resolved.
Mr Robert Cameron, the Managing Director of Centennial, said:
â€œWe are very pleased to have unlocked significant value for Shareholders through the sale of Anvil Hill. The high sale price reflects the buoyant outlook for thermal coal prices and the synergies available to Xstrata Coal.â€
Proceeds from the sale of Anvil Hill will be used to reduce debt by approximately $400 million. The remaining proceeds will be used for anticipated capital management initiatives.