(Updates to add stock movement in the headline and last paragraph)
Coronado Global Resources (ASX:CRN) agreed to divest its Logan Mining Complex in West Virginia, US, selling its full interest in Coronado Coal II to Phoenix Coal Holdings, with the buyer assuming associated liabilities, including reclamation and other post-closing obligations, according to a Monday filing with the Australian bourse.
The Logan complex consists of coal mining properties, leases, permits, and infrastructure, including a preparation plant and load-out facility, located across Boone, Logan, and Wyoming Counties, per the filing.
The deal is expected to be free cash flow positive for the company by eliminating ongoing holding and care-and-maintenance expenses, as well as future environmental and operational liabilities, the filing said.
The transaction is subject to customary closing conditions and is expected to be completed in July, with no anticipated impact on the company's near-term production guidance, the filing added.
The company's shares jumped 19% in recent Monday trade.