The formal documentation relating to Marubeni Coal’s tag-along sale of its 16.67% interest in the Dartbook Joint Venture to Australian Pacific Coal (AQC) has been executed, according to an AQC ASX release.
The sale of Marubeni’s stake in Dartbrook follows AQC’s agreement to buy Anglo American’s majority 83.33% stake in the joint venture in December 2015. Under the terms of the joint venture, Marubeni had the right to “tag” the sale of its interest onto the sale of Anglo American’s stake on no less favourable terms.
AQC cornerstone investor Trepang Services has undertaken to provide the necessary funding for the tag-along sale by way of an US$5 million loan to AQC on a three-year team at an interest rate of 10% per year.
Completion of the Dartbrook acquisition remains subject various conditions, including the receipt of New South Wales government approval to the tenement change of control and AQC providing evidence of its ability to replace the AUS$9.2 million financial assurances.
Edited by Jonathan Rowland.