SYDNEY, AUSTRALIA: Tigers Realm Coal Limited (ASX:TIG), commonly known as TIG, has officially announced the sale of its Russian holdings in a comprehensive share purchase agreement.
The deal, valued at a substantial US$49 million, sees the transfer of all issued shares in its Russian subsidiaries to Limited Liability Company APM-Invest.
The transaction encompasses the entirety of TIG’s Russian assets, including the pivotal mining licenses for the Amaam North project and the Amaam coal deposit, as well as the Beringovsky Coal Terminal and Beringpromservice.
These assets have been central to TIG’s operations, with Amaam North serving as a low-cost entry project and the larger Amaam coal resource poised to scale the company’s production to 5 million tonnes annually.
This strategic divestiture comes on the heels of mounting challenges faced by TIG, as detailed in numerous ASX releases and the CEO’s address at the 2023 Annual General Meeting.
The board of directors concluded that selling off the coking coal projects would best serve the interests of TIG’s shareholders, effectively unlocking the value of these assets.
The proceeds from this transaction are earmarked for returning capital to the shareholders, aligning with TIG’s commitment to shareholder value.
The agreed purchase price is set to be paid in full within thirty days following the closing date, marking a swift and decisive conclusion to this notable transaction.