On 18 April, Australian Pacific Coal Ltd announced in a press release that the company’s recently appointed Chief Executive Officer John Robinson has progressed in securing the outstanding funding necessary for completion of the company’s acquisition of the Dartbrook Joint Venture from the Anglo American Plc group. This included the necessary funding to buy Marubeni Coal Pty Ltd’s 16.67% interest should this be required.
The company indicated that cornerstone investor Trepang Services Pty Ltd had provided a non-binding indication that it intends to arrange for the provision of AQC’s outstanding funding requirements, which are subject to AQC and Trepang (or other parties) agreeing the commercial terms and conditions of the funding, formal transactions documents being entered and any required shareholder approvals being obtained.
In the company release, APC indicated that it would provide further information regarding its outstanding funding needs in due course.
On 27 April, APC announced that it has secured the funding necessary to purchase Marubeni Coal’s 16.67% interest in the Dartbrook Joint Venture should this be required.
Trepang has provided the necessary purchase consideration of AUS$5 million by way of a secured, interest bearing, loan to the company for this purpose.
The loan has a three-year term and an interest rate of 10% per annum. The provision of the Loan is subject to the execution of a general security deed over all property of the company and the receipt of all required waivers to the grant of the security as required by the ASX Listing Rules.
Having considered all other financing alternatives for the procurement of this funding, the company considers that this loan is in the best interests of AQC and all of its shareholders. The company will forthwith seek an ASX waiver for the security to be granted in respect of the loan under Listing Rule 10.1.
The company will provide further information regarding its outstanding funding needs in due course.
Edited from press release by Harleigh Hobbs