Proactive Investor reported that Polo Resources has inked a MOU to sell its 50% interest in JV with Peabody Energy that covers a collection of uranium and coal interests in Mongolia.

The MOU envisages Winsway Coking Coal acquiring Polo’s stake in Peabody Polo Resources BV for USD 35 million in cash of which USD 20 million will be payable within 12 months of completing the transaction.

Polo Resources will also retain 1% royalty over coal sold from licenses in the JV, capped at a maximum sum of USD 50 million and maximum time line of 25 years.

Mr Neil Herbert executive co chairman of Polo said that "We are pleased to be executing the divestment of our non core holding in the joint venture in Mongolia. Polo is focused on maximizing shareholder value through its uranium and coal interests in Extract Resources Limited, GCM Resources plc and Caledon Resources plc and currently has approximately USD 23 million in cash."

(Sourced from Proactive Investors)