Bounty settles on finance deal with QCoal
PERTH (miningweekly.com) – ASX-listed Bounty Mining has signed a A$90-million refinancing transaction with suitor QCoal Bounty, after several failed financing attempts by QCoal.
Bounty said on Monday that the agreed-upon facility provided for cash funding of A$60-million and a guarantee facility for A$30-million.
The funds will be used to repay outstanding debts to Amaroo Blackdown Investments and XCoal Energy and Resources, which were due for repayment at the end of September, as well as for working capital at the Cook Colliery and to satisfy certain obligations at Cook, including the final payment under the asset sale agreement and replacing the rehabilitation bond for the Cook Colliery.
“Shareholders made their wishes clear at a general meeting on September 30, and the board has worked hard to bring the proposal received from QCoal into a form that would meet the company’s needs,” said Bounty chairperson Rob Stewart.
The finance facility will be conducted in three tranches, with the first tranche having a maturity date of July 2020, while the remaining tranches will have a maturity date of June 2021, with interest rates set at 8% a year.
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