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Australian Pacific Coal (ASX:AQC) receives $33M offer for Trepang

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ASX:AQC      MCAP $43.60M
14 May 2021 13:20 (AEST)

Dartbrook Coal Mine. Source: ABC

Australian Pacific Coal (AQC) has received an offer for its Trepang property for over $33 million.

The offer for the property and entities associated with it was received from AQC’s major shareholder and creditor, Trepang Services, underlying its Dartbrook coal mine and associated water rights for around $33.8 million.

The offer includes sale agreements setting out the terms which would govern the proposed sale of land and water rights but would not see any changes to the mining authorities held by the company.  

The offer has been made by Trepang on the basis that proceeds will be used to repay a roughly $87.9 million debt that AQC owes to Trepang and its associates.

If the transaction is approved, AQC’s debt will be reduced by around $32.3 million.

Under the agreement, AQC will still be able to access the sold properties and a term transfer of relevant water rights for the purposes of operating its Dartbrook Coal project.

The offer is irrevocable and will lapse on 30 June if not accepted before then.

Australian Pacific Coal last traded at 13.5 cents on May 13.  

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