Former mining magnate Nathan Tinkler has secured funding to buy the Dartbrook coal mine in New South Wales from mining giant Anglo American.
Mining junior Australian Pacific Coal, which Tinkler now heads, has raised $20 million in loans from its financial backers. It will use the funds, along with $4.5 million of its own cash reserves, to make the initial payment for the mine.
The ASX-listed junior agreed to pay up to $50 million for an 83.33 per cent stake in the Hunter Valley mine in December, with half to be paid in cash by the end of January, and the balance in the form of royalty payments.
Japanese trading firm Marubeni owns the remaining 16.5 per cent in Dartbrook.
The former billionaire, whose mining empire collapsed in 2012 following the slide in coal prices, plans to develop a five million tonnes per annum, open pit operation at the currently-closed mine.
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Australian Pacific Coal said it secured $20 million through a convertible loan from the Paspaley pearling family's Nick Paspaley and developer John Robinson.
The two investors control Trepang Services, which owns a 39 per cent stake in the junior miner.
The loan carries a coupon rate of 15 per cent per annum, and is to be converted into Australian Pacific Coal shares at 1.5 cents a share.
