Australian Pacific Coal (AQC) has received an offer from major shareholder Trepang Services to buy non-core mining assets at the Dartbrook coal mine in New South Wales for $33.7 million.
Australian Pacific stated in January it was considering selling its non-core mining assets at Dartbrook.
This includes property and water rights at the site.
According to Australian Pacific, Trepang’s offer would not result in a change to the company’s control of the mining authorities.
The company stated the land and water rights underly the Dartbrook coal mine, which is operated by subsidiaries AQC Dartbrook management and AQC Dartbrook.
The offer will offset Australian Pacific’s debt owed to Trepang, reducing its overall company debt by $32.3 million.
The offer includes an access and compensation agreement to allow Australian Pacific to access Dartbrook until December 31, 2027.
Australian Pacific will also be assisted in reaching environmental conditions through a land acquisition and mitigation policy agreement with Trepang under the deal.
Australian Pacific’s board is reviewing the offer and will provide an update in due course.
In March, Australian Pacific extended its strategic review of Dartbrook, as the company could not reach a board decision on capital raising.
The company was knocked back by the New South Wales Independent Planning Commission (IPC) after applying for a five-year extension at Dartbrook.
This was due to air quality, noise, subsidence groundwater and greenhouse gas emissions.
The IPC then blocked a modification submission by Australian Pacific to extend its approved permitted six million tonnes per annum of coal until December 2027.
“The company further advises that it is continuing with its strategic review with the aim of considering and assessing all available options for AQC, the Dartbrook Project and shareholders,” Australian Pacific stated.