Bounty Mining has signed a $90 million refinancing facility agreement with QCoal Bounty Holdings.
The deal provides cash funding of $60 million and a guarantee facility for $30 million.
The funds will be used for repayment of the outstanding amounts owing to Amaroo Blackdown Investments and XCoal Energy & Resources, which were due for repayment on September 30.
It will also be used for capital expenditure and working capital at the Cook Colliery, to make final repayment of the asset sale agreement with Glencore and to replace the Glencore rehabilitation bond for the Cook Colliery.
As part of the agreement, Bounty’s subsidiary, Bounty Cook, will enter into a coal offtake agreement with QCoal.
The offtake agreement will commence once the existing arrangement with XCoal Energy & Resources has been finalised and will be in place until December 31 2025 or until the loading of 5,000,000 tonnes of coal.
This is expected to be all of QCoal’s metallurgical coal production from the Cook Colliery.
An Amaroo Blackdown Investments recapitalisation plan proposed to Bounty Mining was rejected in a shareholder vote at a general meeting late last month.
The proposal was knocked back in a landslide defeat, with 81 per cent of Bounty shareholders voting against the plan.
Bounty chair Rob Stewart said, “Shareholders made their wishes clear at the general meeting on 30 September and the board has worked hard to bring the proposal received from QCoal into a form that would meet the company’s needs.”
“Bounty is now able to move forward with confidence and focus its energies on realising the potential of our coal deposits.”
While the transaction is finalised, Bounty’s share will remain in voluntary suspension.
QCoal holds approximately 6.54 per cent of Bounty’s shares.