Bounty Mining executes refinancing deal with QCoal
QCoal and managing director Christopher Wallin hold about 6.54 per cent of Bounty’s shares.
Bounty said the agreement provided for cash funding of $60 million and a guarantee facility for $30 million.
The funds will be used to repay outstanding debts to Amaroo Blackdown Investments and XCoal Energy and Resources, which were due for repayment on September 30.
They will also go towards capital expenditure and working capital at the Cook Colliery and to satisfy certain obligations to Glencore.
Subsidiary Bounty Cook will enter a coal offtake agreement with QCoal once the exitsing arrangement with XCoal Energy and Resources has been finalised.
“Shareholders made their wishes clear at the general meeting on September 30 and the board has worked hard to bring the proposal received from QCoal into a form that would meet the company’s needs,” Bounty chairperson Rob Stewart said.
Bounty suffered a $34.4 million loss in the last financial year and more than $28.8 million the previous year.
The company acquired the assets of Caledon Coal and Blackwater Coal, including Cook Colliery and the Minyango coking coal project, in late 2017 for $31.5 million
It also acquired some assets associated with the Cook Colliery that had remained the property of Glencore subsidiary Cook Resource Mining for a total of $10 million in deferred payments.
The first shipment of hard coking coal from Cook Colliery since its recommissioning under new owners Bounty Mining sailed from the Port of Gladstone in mid-2018.