PERTH (miningweekly.com) – ASX-listed Australian Pacific Coal (APC) is working to restart underground operations at the Dartbrook coal mine, in New South Wales, as soon as possible, while securing outstanding financing to fund the acquisition of the mine.
APC in December signed an agreement with diversified miner Anglo American to acquire the majority interest in the Dartbrook joint venture (JV) for up to A$50-million.
APC reported this week that the company was working to secure the necessary funding to complete the acquisition of the Dartbrook JV, including the funding needed to buy out JV partner Marubeni Coal’s 16.67% interest in the project, should this be required.
Financier Trepang Services has provided a nonbinding indication that it would arrange for the provision of the outstanding funding requirements, subject to the two companies agreeing on commercial terms and conditions.
The Dartbrook transaction would comprise an upfront cash payment of A$25-million, as well as the granting of a royalty equal to A$3/t of future coal production and A$0.25/t of third-party coal processed at Dartbrook.
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).
In the meantime, APC said it was continuing to plan for the restart of underground operations at Dartbrook, with the company saying it was ensuring that the right personnel would be in place.
In the coming months, APC would conduct a series of community briefings to lay bare its plans for the Dartbrook mine.
The Dartbrook mine is currently under care and maintenance, after ceasing production at the start of 2007.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
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