Australian Pacific Coal Ltd (AQC) received an enhanced funding package for the Dartbrook JV and launched a A$20 million ($13.7 million) equity raise. AQC and its JV partner Tetra Dartbrook Pty Ltd have agreed with Vitol Asia Pte Ltd to upsize the existing senior debt facility from $60 million to $90 million on similar terms.
“This funding package and the decision by Vitol to upsize the senior debt facility by $30 million to encompass Dartbrook’s working capital requirements is a huge vote of confidence in the Dartbrook project,” AQC’s Managing Director and CEO, Ms Ayten Saridas, said. “We acknowledge and appreciate the strong support provided by our shareholders, particularly Trepang, and by Vitol, and will continue our efforts to bring Dartbrook back into commercial production before the end of the year.”
The Senior Debt Facility is contingent upon securing a A$20 million junior debt facility, of which AQC will fund 50% (being A$10 million), which may only be drawn once the senior facility is fully drawn down.
The Dartbrook Project is expected to be fully funded and have access to both debt facilities upon confirmation of AQC providing A$10 million for the subordinated facility and satisfaction of customary conditions precedent, including the AQC equity raise.
The company’s largest shareholder Trepang Services Pty Ltd, together with its related parties (who collectively hold 35.96% of AQC’s ordinary shares), has committed to subscribe for A$6 million in the equity raise.
Proceeds from the equity raise will be used:
- to satisfy AQC’s 50% share of the A$20 million subordinated facility (A$10 million);
- to meet general working capital requirements of the company; and
- to cover the fees associated with the equity raise.
AQC recently restarted the Dartbrook mine, located in the Hunter Valley of New South Wales, Australia. The operation was placed on care and maintenance in 2006. The Dartbrook Joint Venture (JV) restarted the mine and brought raw coal to surface on Wednesday, September 4, 2024, using a newly installed 4 km conveyor system. The conveyor system is designed to transport raw coal mined underground from the Kayuga seam to surface, via the Hunter Tunnel, where it will be processed at the coal handling and preparation plant (CHPP).
