Former coal baron Nathan Tinkler and his new coal venture will need to stump up $25 million in cash within 33 days if the acquisition of Anglo American's Dartbrook mine is to go ahead.
Mr Tinkler's latest move was revealed on Christmas Eve, and full details of the plan were announced by his new company, Australian Pacific Coal (AQC), to the ASX on Tuesday morning.
The company said it was considering ways to raise $30 million to fund the acquisition and provide working capital, including an entitlement issue and a placement to sophisticated investors.
According to the ASX statement, the two largest shareholders in AQC will support "any entitlement issue that may be undertaken".
Mr Tinkler is the biggest shareholder with 37 per cent, according to Bloomberg, while executive director Paul Byrne is the second-largest shareholder with more than 4 per cent.
Mr Tinkler said the mine was strategically located and had the essential infrastructure in place, and he said Dartbrook had the type of coal that would thrive if climate change concerns continue to rise around the world.
"We firmly believe in the resilient demand for high-energy, low-ash thermal coal, as concerns about greenhouse emissions increase. Thermal coal will remain one of the core sources for energy production and if we can position this asset to be in the lowest-cost quartile we are well placed to ride on that demand," Mr Tinkler said in a statement.
As expected, AQC says it will seek to act on studies done by the previous owner into developing an open pit at Dartbrook.
AQC says it will try to develop an open pit capable of producing 5 million tonnes a year, despite some Hunter Valley residents and horse studs successfully opposing coal expansions, such as Anglo American's Drayton mine.
"The company expects this proposal to be favourably considered by both the local community and regulatory authorities, due to the approvals of adjacent existing open cut mines and Dartbrook's less obtrusive impact on the local community," AQC said in a statement to the ASX.
Such an expansion would create at least 250 jobs, the company said.
Japanese trading house Marubeni owns the 16.5 per cent that AQC does not own, and has first right of refusal if Anglo puts the mine on the market.
Marubeni's support for the sale to AQC is still being waited upon, but it would be a major surprise if Marubeni chose to take full ownership of the mine, given the company typically takes minority holdings in Australian coal and iron ore mines.
