Dyno Nobel (ASX:DNL) completed its sale of the Phosphate Hill mine in Queensland to local investment group Ryowa II GPS, a unit of Mayfair Australia, for nominal consideration of AU$1, per a Wednesday filing with the Australian bourse.
Ryowa assumed the economic risk and benefit of Phosphate Hill from April 1 to completion on June 20, including all operating cashflows and capital expenditure. Ryowa also assumed all operational and environmental liabilities associated with the project, giving Dyno Nobel "a clean separation from the asset," the company said.
Dyno Nobel made a fixed completion payment of AU$50 million to Ryowa, incorporating the economic risk transfer. The deferred consideration payable to Dyno Nobel increased to AU$150 million from AU$100 million, subject to certain conditions and milestones.
Additionally, Dyno Nobel will fund AU$125.9 million in support of the future rehabilitation and remediation of Phosphate Hill, per the filing. The company continues to expect net present value positive cashflows from the deal.