Stakes double in mine buy
Wednesday 15 February 2017
Australian Pacific Coal (APC) and Anglo American have failed to finalise the sale of the Dartbrook coal mine in the Hunter Valley by an agreed deadline last week.
Neither company has provided details on what the cause of the delay is, although they have agreed to extend the sunset date attached to the agreement until the 14th of April in just over a month.
However, the stakes of not following through on the promises initially set out in the original share purchase agreement have also doubled, with the break-fee increasing from $A500,000 to $A1,000,000.
APC has coal tenements around Clermont and Dingo - and most notably - the Hillalong tenement adjacent to Hail Creek mine west of Mackay.
However, those projects have not progressed much in the last two years with APC focussing their efforts on the Dartbrook Mine which they opportunistically purchased at what nows looks like the cyclical bottom of the coal market in 2016.
According to APC, the Dartbrook Mine, which is currently in care and maintenance, will be restarted as soon as possible, enabling them to capitalise on resurgent coal prices and transition them from a coal explorer with no revenue, to a coal miner with cash flow.
In 2015, APC did a significant amount of drilling on the Hillalong tenement under a joint venture with Rio Tinto.
Under the JV, Rio Tinto had the option to take a majority stake in the deposit if they were happy with the drilling results.
However, for reasons more to do with the collapse in the coal market than the drilling results, Rio Tinto chose to walk away from the deal, nearly forcing APC into administration.
That outcome was narrowly averted by high profile resources investor Nathan Tinkler and Trepang services - a company owned by the wealthy Northern Territory based Paspaley and Robinson families - who bought 54 million shares for just under $210,000.
- Big day for CQ explorer Wednesday 15 March 2017
- Company making transaction this week. Wednesday 08 February 2017
- Red tape to cost jobs Wednesday 16 November 2016
- Hail Creek fined Wednesday 06 July 2016
- Baker picks out Hillalong Wednesday 18 May 2016
- CQ prospector soon to be miner. Wednesday 03 February 2016
- Tinkler to be hands on in CQ Wednesday 04 November 2015
- Money too tight to mention Tuesday 15 September 2015
- Tinkler returns to where it all started Wednesday 29 July 2015
- Hail Creek JV ends Wednesday 01 July 2015