Body of the report:
The Management Board of Jastrzębska Spółka Węglowa S.A. ("JSW", “Company”) informs that on October 10, 2018, JSW made the decision to continue discussions between Prairie Mining Limited (“Prairie”) and JSW regarding potential co-operation and/ or transaction options in respect of Prairie’s Polish coal projects, following the exchange of technical information during the last six months (about which the Company reported in Current Report No. 11/2018).
The Due Diligence process at the Jan Karski project has confirmed that part of the “Lublin” deposit contains semi-soft coking coal (type 34), which can be potentially utilised by JSW. Due Diligence has also indicated the technical feasibility and potential synergies of accessing initial seams at the Dębieńsko deposit utilising the existing infrastructure at JSW’s adjacent Knurów-Szczygłowice mine. Exploiting those synergies would require modifications to project configuration and obtaining relevant approvals, including concession modifications. JSW estimates that access via the Szczygłowice mine potentially enables the realization of up to 500 thousand tons per year of hard coking coal (type 35) production from Dębieńsko, in up to 18 months from the time that relevant administrative permits and concession amendments are granted.
There can be no certainty as to whether any transaction(s) or co-operation will be agreed, or the potential form of such transaction(s) or co-operation.
It is emphasised that any potential transaction(s), should they occur, may be subject to a number of conditions including, but not limited to, obtaining necessary corporate approvals, consents and approvals related to funding, consents from Poland’s Office of Competition and Consumer Protection (UOKiK) if required, and any other requirements that may relate to the strategy, objectives and regulatory regimes applicable to the respective issuers.
The companies will continue to comply with their respective disclosure obligations to the relevant markets, as required.
Legal basis: Article 17 Section 1 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse and Repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.