Bounty Mining Ltd. signed a facility agreement for a A$90 million refinancing transaction with QCoal Pty. Ltd. after rejecting multiple funding proposals from the latter.
The facility comprises cash funding of A$60 million and a guarantee facility for A$30 million, according to an Oct. 7 release.
The cash-strapped miner recently defaulted on an upsized A$35 million working capital facility provided by major shareholders Amaroo Blackdown Investments PTE Ltd. and Amaroo Blackdown Investments LLC Bounty will use the funds to repay the outstanding amounts to Amaroo and XCoal Energy & Resources LLC, to fund capital expenditure and working capital at the Cook colliery in Queensland, Australia, and to satisfy certain obligations to Glencore PLC.
Additionally, Bounty unit Bounty Cook Pty. Ltd. will enter into a coal off-take agreement with QCoal. The agreement will be valid until Dec. 31, 2025, or until loading of about 5.0 million tonnes of coal, expected to be the total metallurgical coal production from the Cook colliery.
The off-take will start after the existing arrangement with XCoal Energy has been finalized, expected Jan. 1, 2021.
QCoal and associate Christopher Wallin hold about a 6.54% interest in Bounty, and QCoal has a right to nominate up to 49% of Bounty's board.
