- Write by:
-
Saturday, May 11, 2019 - 10:50:32 AM
-
983 Visit
-
Print
Mining News Pro - Australian coal producer TerraCom (ASX:TER) has rolled out a A$63 million (about $44m) restructuring plan, consisting of a A$35-million capital raise and a $20-million convertible bond to support its growth ambitions.
According to Mining News Pro - The company, which has two operating mines in Queensland and Mongolia, is launching a fully underwritten entitlement offer priced at 58c per share to raise an initial A$35 million.
TerraCom has also locked in a US$20m convertible bond deal with shareholder and investment manager OCP Asia.
Both efforts will see TerraCom’s interest costs eventually reduced by around $16 million every year.
"TerraCom has also locked in a $20m convertible bond deal with shareholder and investment manager OCP Asia"
Petra Capital is acting as lead manager, bookrunner and underwriter for the entitlement offer, which is also sub-underwritten by existing shareholders Bonython Coal No 1 and Noble Resources International, and a third party, Mistlake.
“The funds raised will significantly reduce the company’s cost of debt and provide vital leverage in the final negotiation of refinancing existing debt,” chairman Wal King said in a statement.
“It will provide the company with expansion and business development opportunities with its new restructured balance sheet … as well as providing the opportunity for the board in due course to deliver on its short-term goal of paying a maiden dividend to shareholders,” he noted.
The company recently upgraded the marketable reserves at its Blair Athol thermal coal mine in the Bowen Basin of Queensland, which added three years to the operation’s productive life.
TerraCom acquired Blair Athol in 2016 from Rio Tinto for only A$1 (about 70 US cents at today’s rates), at a time when coal prices were hitting historic lows and top miners couldn’t wait to offload their coal mines.
The company, which reopened the mine the following year, expects Blair Athol to churn out 3 million tonnes of coal a year over an eight-year mine life.
Short Link:
https://www.miningnews.ir/En/News/372969
The US and the Philippines are in discussions over ways to prevent China from dominating nickel processing in the ...
BHP Group can’t cherry pick Anglo American assets without paying a hefty premium, Anglo investors told Reuters, ...
When former boss Mark Cutifani left Anglo American Plc in mid-April 2022, things had rarely looked better for the ...
Teck Resources, Canada’s largest diversified miner, saw its copper production jump by 74% in the first three months of ...
Anglo American Plc said it is has received an unsolicited non-binding combination proposal from BHP Group.
Toronto-listed miner OceanaGold Corp said on Wednesday it will raise 6.08 billion pesos ($106 million) through an ...
Anglo American Plc said it is has received an unsolicited non-binding combination proposal from BHP Group.
BHP Group Ltd. proposed a takeover of Anglo American Plc that values the smaller miner at £31.1 billion ($38.8 billion), ...
The London Metal Exchange is imposing new rules surrounding the movement of metal in its warehousing network, taking aim ...
No comments have been posted yet ...