PERTH (miningweekly.com) – The share price of coal miner Australian Pacific Coal fell by more than 16% on Monday after the company said that it had been unable to reach acceptable terms to finalise a binding funding proposal.
The ASX-listed company last week flagged a possible funding offer, telling shareholders that it had received a binding written offer for the provision of funding.
However, the company said on Monday that it had not reached acceptable terms with the entity that provided the binding funding proposal, and while discussions remained under way, the company could not provide certainty that an acceptable arrangement could be achieved.
The company in May completed a A$50-million transaction to buy an 83.33% interest in the Dartbrook coal mine, in New South Wales, from diversified miner Anglo American.
The project consists of an underground thermal coal mine and associated processing infrastructure, which has been on care and maintenance since 2006.
Australian Pacific shares were trading at a low of 0.9c a share on Monday, down from an opening price of 1.1c a share.