Trepang backs Tetra/Javelin bid for the Australian Pacific

PERTH (miningweekly.com) – ASX-listed Australian Pacific Coal major shareholder and creditor Trepang Services has backed a new bid for the Dartbrook coal project from Tetra Resources and Javelin Private Capital Group.

The two companies were proposing the formation of a joint venture (JV) with Australian Pacific, in which Tetra would hold a 40% stake and Australian Pacific Coal would hold a 60% stake in the Dartbrook coal project in New Wales. South.

The proposal included a debt moratorium and financing agreement between Australian Pacific and its major shareholder Trepang Services, with the bidders indicating Trepang’s support for the debt moratorium and financing agreement. However, Australian Pacific has not received evidence of this support.

The proposal also includes a marketing agreement between Javelin and the Dartbrook joint venture participants, and a $65 million prepaid loan agreement between Javelin and the joint venture participants.

The proposed transaction is subject to a number of conditions, including joint venture documentation, a coal marketing agreement, the prepayment loan agreement, management agreements with Tetra and a debt standstill agreement with Trepang.

Tetra and Javelin’s offer comes on top of other offers from Nakevo and M Resources, as well as Australian Pacific’s plans to raise A$100m in a fully waiveable pro rata right offer subscribed at 5.83 to 1, at a price of 34c per share.

Trepang said in a statement to Weekly mining Friday that the company was of the view that the joint venture proposal received from Tetra and Javelin was superior to other proposals currently being considered by Australian Pacific, in particular a highly dilutive rights offering proposed by the coal miner.

“Trepang believes the Tetra/Javelin joint venture proposal promises the highest value and most accretive outcome for Australian Pacific shareholders and for the development of the Dartbrook project.

“Australian Pacific’s current plan results in a reduction in the economic interest of existing Australian Pacific shareholders to an intangible level of approximately 7%, prior to mine restart funding, which would almost certainly result in a This contrasts with the proposal filed by Tetra/Javelin, which would allow existing Australian Pacific shareholders to retain a 60% economic interest in the project, and this includes a fully funded mine restart,” Trepang said. .

“Accordingly, in order to move the Tetra/Javelin proposal forward, and subject to reaching a binding agreement and no superior proposal being received, Trepang has agreed to a debt moratorium and financing agreement between Australian Pacific and Trepang Services and its associated parties.

Comments are closed.