While Guildford was solely a Queensland coal explorer when it listed in 2010, it has since become a small-scale Mongolian coking coal miner and is nearing its goal to start exports into neighbouring China.

On July 17, Guildford revealed it received an unsolicited offer of $22.5 million for its Queensland assets from a Singaporean company.

The deal has since been finalised with Sino agreeing to pay $25 million for Guildford’s stakes in eight projects across the Galilee, Bowen, Surat, Maryborough and Mulgildie basins.

Guildford said the payment consisted of a non-interest bearing convertible promissory note which matures six months after issue.

“The promissory note is payable in cash or, if the 30 day volume weighted average price for Sino’s share as quoted on the Singapore Exchange is at least $SG0.24 [A20.7c] on the date two business days prior to maturity, Sino may convert, at its option, the promissory note into ordinary shares in Sino to be issued to Guildford at an issue price of SG$0.20 (assuming an exchange rate of $US1:$SG1.26),” Guildford announced.

Sino also agreed to pay Guildford a royalty of US35c per tonne of coal sold from the Australian assets over the initial five years of commercial production.

Guildford also landed an agreement to remain the sole and exclusive manager of these assets, and even to have the “first and last” right to be selected as the contract miner for any of them that start commercial production.

“A management fee payable to Guildford for providing these management services will be agreed with Sino,” Guildford said.

The deal is subject to the usual conditions.