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- Bowen Coking Coal (BCB) secures $190 million from numerous funding arrangements to accelerate its development-ready coking coal assets in QLD
- The new funds will help the company finalise its acquisition of the Burton Mine and Lenton projects, as well as, ramp up production of its key assets
- Convertible notes have been issued, and funding facilities were secured with Taurus Mining and New Hope Corporation (NHC)
- The company says this will help secure strong cash flows amid the opening of its operations this year
- Shares are trading 10.1 per cent lower today at 31 cents each at 12:38 pm AEST
Bowen Coking Coal (BCB) has secured $190 million from numerous funding arrangements to accelerate its development-ready coking coal assets in Queensland.
The new funds will help the company finalise its acquisition of the Burton Mine and Lenton projects, as well as ramp up production of its key assets.
To ensure the acquisitions are completed smoothly, BCB secured a bonding facility agreement with New Hope Corporation (NHC) for $70 million.
With an interest rate of 8 per cent and a term of two years, the funds will provide a bank guarantee to proceed with the acquisitions.
The company also indicated the potential for future collaboration with New Hope, after signing a memorandum of understanding to explore further growth options.
To ensure an acceleration in activities following the acquisitions, a debt facility of US$55 million (A$78.9 million) was secured with Taurus Mining.
Repayment will be staggered over a 18 month period, and will attract a front-end fee of 2 per cent of the facility limit and a coupon rate of 8 per cent.
These funds are intended to be used for capital expenditure and expenses incurred in developing the Burton and Broadmeadow East projects, and operating the Bluff mine.
To further fund the ramp up of production, BCB will issue $40 million in convertible loan notes to two Crocodile Capital funds.
The notes are convertible into fully-paid shares and will have a five year maturity date. They will carry an interest rate of 3 per cent per annum and an initial conversion price of 32.5 cents, representing a discount of about 6 per cent.
BCB Executive Chairman Nick Jorss said it was a complex process to secure the funds.
“With the opening of our operations this year and in current conditions, we expect to gain access to strong cash flows in a buoyant coking coal market which will help support further growth,” he said.
In addition, Bowen Coking Coal said preparations for mining at the Burton complex is well underway as recently-appointed BUMA Australia has now mobilised two 400-tonne excavators to the Broadmeadow East pit.
Shares were trading 10.1 per cent lower today at 31 cents each at 12:38 pm AEST.
