Photo by: Bloombeg
PERTH (miningweekly.com) – ASX-listed Australian Pacific Coal (APC) has raised A$20-million to fund its acquisition of an 83.33% interest in the Dartbrook joint venture (JV), in New South Wales.
In December last year, APC inked an agreement with diversified miner Anglo American to acquire the majority interest in the Dartbrook JV for up to A$50-million.
The transaction fee would comprise an upfront cash payment of A$25-million and the grant of a royalty equal to A$3/t of coal produced by the operation in the future and A$0.25 for each tonne of coal sourced from other sites and processed using Dartbrook’s processing infrastructure.
The deal also comprised royalty payments that would be subject to escalation with reference to the Brisbane All Groups Consumer Price Index and capped at A$25-million (in real terms).
APC CEO and MD Nathan Tinkler on Tuesday said that the A$20-million was raised through a convertible loan deed with the two owners and controllers of existing cornerstone investor Trepang Services.
Subject to APC shareholder approval, the principal and interest amounts of the convertible loan deed would be converted into ordinary shares in the company, at a price of 1.5c each.
“We are encouraged to have successfully raised this finance for the Dartbrook acquisition. Dartbrook is a high-quality asset and we look forward to progressing our plans further in consultation with the local community,” Tinkler said.
The Dartbrook mine is currently under care and maintenance, after ceasing production at the start of 2007.