Australian Pacific Coal Ltd, (APC) announced that the Dartbrook Joint Venture (JV) has received a credit committee approved offer on agreed terms for a 3-year $60 million debt facility from Vitol Asia Pte Ltd, a leading global energy and commodities company. APC said the debt facility will be used to fund the restart of the Dartbrook mine, including equipment acquisitions and completion of remediation works, and the acquisition of additional mining systems during ramp-up to achieve full capacity.
“After reviewing multiple funding proposals, and working under increasingly difficult global economic conditions, I am very pleased that we have received a credit committee approved offer from Vitol, based on mutually agreed terms,” said Ayten Saridas, interim CEO, APC. “For the past 12-months, APC has been focused on de-risking the Dartbrook project and obtaining a debt funding package that gives Dartbrook the best chance of succeeding and delivers the best outcome for shareholders and stakeholders. The Dartbrook mine is a Tier 1 asset and this transaction is testament to the quality of the resource.”
APC has revised its schedule to align with the receipt of funding and it anticipates an intensive capital works program leading up to first coal, targeted for Q1 2024. During that period, the company said it will be working towards finalizing a working capital facility to underpin our commercial operations going forward.
In parallel with the funding package, the Dartbrook JV has agreed to enter into a coal sales and marketing agreement with Vitol for all Dartbrook coal production, including assigning coal marketing rights to Vitol for the life of the mine (including any extensions).
Dartbrook is an idled underground coal mine, located in the Hunter Valley of New South Wales, approximately 10 km northwest of Muswellbrook. It produces a high-quality thermal coal that is typical of the Hunter Valley and it also has the potential to produce some semi-soft metallurgical coal. The Dartbrook JV comprises APC (80%, via subsidiaries) and Tetra Dartbrook Pty Ltd (20%).
