Another suitor steps up for Dartbrook

Dartbrook mine

The battle for NSW coal mine Dartbrook continues.

Owner Australian Pacific Coal (AQC) has received another conditional non-binding indicative takeover proposal, this time from a proposed joint venture between Tetra Resources and Javelin Private Capital Group.

The company notes the proposal from the bidding parties represents a joint venture proposal and not a control transaction.

The proposal received is non-binding and indicative and subject to the following conditions precedent:

  • A successful debt placement by Javelin Private Capital
  • The bidding parties finalising the legal and financial structure subject to tax advice
  • Execution of binding transaction documents, including:
  1. Joint venture documentation
  2. Coal marketing agreement between the AQC Dartbrook JV participants and Javelin Global Commodities
  3. $65 million pre-pay loan agreement between Javelin and AQC Dartbrook JV Participants, and associated security documents
  4. Management agreements with Tetra
  5. A further debt moratorium agreement to be agreed between major creditor Trepang and its parties, and AQC on terms acceptable to them.

Tetra is a privately owned Australian company formed with the intent of developing and managing coal projects with prior historic association with Dartbrook.

Javelin is a world leader in coal and expects to manage over 50 million metric tonnes in 2022.

AQC said the proposal was at an extremely early stage, is non-binding, conditional and required further consideration.

Given the non-binding indicative proposal needs the support of the Trepang parties to proceed, AQC will seek advice from them as to whether they are willing to support the proposal.

The company has already had takeover bids from Trepang Services and Nakevo, run by former AQC managing director Nathan Tinkler.

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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