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(L-R)Gerda Dickfos, Heather Dellar and Rosie Dickens Brian and Merilyn Lloyd oy Fernie and Rachel Wight dragline fifo (L-R)Joyce and Doug Olive and Shane Ryan Selma Draper and Darcy Sheather Gloria Brown and Darcy Sheather Jo-Anne Burke, DB Scaffolding; Susan McGuire, Mayogroup Aboutusgenericimage_3 csg Steve Beale and Chris Dunphy, MIPEC Greg Byrne, Downing; Ian Reed, QNP Aboutusgeneric_2 (L-R)Leola Barclay, Ann Wright and Barbara Jones
(L-R)Gerda Dickfos, Heather Dellar and Rosie Dickens Brian and Merilyn Lloyd oy Fernie and Rachel Wight dragline fifo (L-R)Joyce and Doug Olive and Shane Ryan Selma Draper and Darcy Sheather Gloria Brown and Darcy Sheather Jo-Anne Burke, DB Scaffolding; Susan McGuire, Mayogroup Aboutusgenericimage_3 csg Steve Beale and Chris Dunphy, MIPEC Greg Byrne, Downing; Ian Reed, QNP

Money too tight to mention
THANKS for investing Nathan ….by the way, can you pay for the EGM?
Tuesday 15 September 2015  

YOU know cash flows are tight when you have to ask for an advance from your angel investors to hold a meeting to officially confirm their investment.

This week, Australian Pacific Coal (APC) had to go to the unusual length of seeking an early release of funds held in escrow so that they could pay the daily bills and organise an Extraordinary General Meeting in October to acknowledge the company-saving-investment of Nathan Tinkler, the Paspaley family and Bourke-to-Darwin-made-good developers - the Robinson family.

In a statement released this week, APC said AU$200,000 of the investor’ $13.2 million investment was being released.

“Each deed instructs the company’s solicitors, HopgoodGanim, to release $100,000 from escrow and to pay the amount as a loan to the company,” the statement said.

“The $200,000 provided will be used for working capital and the payment of costs associated with the preparation for the Extraordinary General Meeting (EGM) that is to be convened for the approval of the proposed placements to Bentley and Trepang.”

If shareholders do not approve the new partners, APC will be required to repay the $200,000; although, since they do not have the money in the first place, it begs the question.

Back in September, shares in Australian Pacific Coal took off after the high profile investments in the company sent shares up more than 200 per cent and into a trading halt.

High profile resources investor, Nathan Tinkler, and Trepang services - a company owned by the wealthy Northern Territory-based Paspaley and Robinson families - bought between them 54 million shares for just under $210,000.

The purchase represents around 15 per cent of the business, whose value collapsed from a high of nearly $0.75 in 2005 to a low of just $0.002 in June.  

Earlier in April, APC announced it had just $300,000 of working capital to proceed with, and in June, its future looked even more bleak following a decision by Rio Tinto not to continue with its JV on the Hillalong tenement adjacent to Hail Creek mine west of Mackay.

It is unclear which of the company's assets are the ones considered attractive by its new investors.

Rio Tinto would not have spent 12 months drilling the resource if they did not think it had potential, and a decision not to buy could have been made for all sorts of reasons unrelated to the results of the drilling.

On the other hand, APC says its flagship project is its Cooroorah tenement between Curragh and Jellinbah mines near Blackwater.

That project has advanced to the mineral development licence stage and has a deposit of around 125 million tonnes of metallurgical and thermal coal.
At any rate, APC have welcomed the interest of its newest investors.

“The proceeds from the placement will enable the company to continue the focussed exploration strategy of its tenements, as well as provide additional working capital,” APC Chairman, Peter Zeigler, said last month.

Mr Tinkler shot to fame in 2009 when he topped the Australian BRW Rich List for people under 40. His personal wealth at the time was estimated to be $441 million.The former electrician who worked in Newcastle coal mines made a fortune selling stakes in several mining companies around Middlemount.


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