Australian Pacific Coal (AQC) has received a non-binding letter of intent for $75 million in debt funding to restart the Dartbrook coal mine in NSW.
AQC requires $120 million in working capital to enable mining operations to recommence at the site.
“The receipt of a non-binding letter of intent for up to $75 million of debt funding from a highly credible global party in this tough capital market environment is a clear signal that the Dartbrook project presents an attractive and compelling investment for lenders and traders alike,” AQC interim chief executive officer Ayten Saridas said.
“Whilst we have had to rely on our own balance sheet to fund the restart activities to date, it has enabled us to significantly de-risk the project and reflects positively on our progress.”
Dartbrook has been shuttered since 2006, but AQC and its joint venture (JV) partners have been working to recommission the mine since September 2022.
“We are on track to commence mining operations in the fourth quarter of 2023 and anticipate first coal sales and shipments in quarter one, 2024,” Saridas said.
“Thermal coal prices have recently rallied and this is an opportune time to be a new source of supply of NEWC spec coal into the export market.
“Whilst we still have much work to deliver on our plans, AQC and our JV partner, Tetra, remain focused on the restart of the Dartbrook mine.”