Bowen Coking Coal Limited (ASX:BCB) has entered into a Binding Term Sheet to acquire to acquire New Lenton Coal Pty. Limited from New Hope Corporation Limited (ASX:NHC) for AUD 27.5 million on August 2, 2021. Bowen Coking Coal Limited (ASX:BCB) signed a binding share sale and purchase agreement to acquire New Lenton Coal Pty. Limited from New Hope Corporation Limited (ASX:NHC) for AUD 27.5 million on December 24, 2021. Under the terms of transaction, Bowen has agreed to pay New Hope an AUD 20 million upfront payment (of which up to AUD 10 million can be in Bowen shares at Bowen's election); up to AUD 7.5 million in deferred milestone payments linked to both production ramp up and time-based payments (24 and 36 months) plus up to AUD 70 million in predominantly price-linked royalty payments on 90% of all coal produced from the Lenton JV. Transaction will be funded via AUD 15.4 million equity raising. Equity Raising comprises an AUD 10 million institutional placement which is fully committed and will complete on 10 August 2021 and an underwritten 1 for 12 pro rata non-renounceable rights issue. New Lenton Coal owns 90% interest in the Lenton JV and Lenton JV owns the New Lenton Project and the Burton Mine located in the Northern Bowen Basin. MPC Lenton Pty Ltd, a subsidiary of Formosa Plastics Group (“Formosa'), currently holds the remaining 10% interest in the Lenton JV. Completion of the transaction will transition Bowen from an explorer and developer of assets to a potential multi-mine producer with opportunity to materially accelerate timeline to production through third party infrastructure. The transaction is subject to the parties agreeing and entering into formal transaction documents and certain other conditions being satisfied and Bowen agreeing acceptable commercial arrangements with NHC's existing joint venture partner Formosa in relation to the future ownership, operation and funding arrangements for the Lenton JV assets. Transaction is also subject to Bowen shareholder approvals required under the ASX Listing Rules and is expected to close by the end of Q1 2022. As of June 21, 2022, Bowen Coking Coal Limited (ASX:BCB) has executed a series of funding arrangements totalling approximately AUD 190 million to support the Company's development of its portfolio of development-ready coking coal assets. The new funding comprises a combination of new debt facilities and convertible loan notes. Out of this AUD 70 million will be used for funding the acquisition.

Bowen is advised by Grant Samuel as Financial Adviser, Johnson, Winter & Slattery as Legal Advisor in relation to the Acquisition.

Bowen Coking Coal Limited (ASX:BCB) completed the acquisition of New Lenton Coal Pty. Limited from New Hope Corporation Limited (ASX:NHC) on July 1, 2022.