{"id":1115477,"date":"2019-05-10T13:00:26","date_gmt":"2019-05-10T13:00:26","guid":{"rendered":"http:\/\/www.mining.com\/?p=986905"},"modified":"2019-05-10T13:00:26","modified_gmt":"2019-05-10T13:00:26","slug":"coal-miner-terracom-fires-up-a63-million-restructuring-plan","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1115477","title":{"rendered":"Coal miner TerraCom fires up A$63 million restructuring plan"},"content":{"rendered":"

Australian coal producer\u00a0TerraCom (ASX:TER)\u00a0has rolled out a A$63 million (about $44m) restructuring plan<\/a>, consisting of a A$35-million capital raise and a $20-million convertible bond to support its growth ambitions.<\/p>\n

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.<\/p>\n

TerraCom has also locked in a US$20m convertible bond deal with shareholder and investment manager\u00a0OCP Asia.<\/p>\n

Both efforts will see TerraCom\u2019s interest costs eventually reduced by around $16 million every year.<\/p>\n

TerraCom has also locked in a US$20m convertible bond deal with shareholder and investment manager\u00a0OCP Asia.<\/q><\/p>\n

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.<\/p>\n

\u201cThe funds raised will significantly reduce the company\u2019s cost of debt and provide vital leverage in the final negotiation of refinancing existing debt,\u201d chairman Wal King said in a statement.<\/p>\n

\u201cIt will provide the company with expansion and business development opportunities with its new restructured balance sheet \u2026 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,\u201d he noted.<\/p>\n

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\u2019s productive life.<\/p>\n

TerraCom acquired Blair Athol in 2016 from Rio Tinto for only A$1<\/a> (about 70 US cents at today\u2019s rates), at a time when coal prices were hitting historic lows and top miners couldn\u2019t wait to offload their coal mines.<\/p>\n

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.<\/p>\n

The post Coal miner TerraCom fires up A$63 million restructuring plan<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Australian miner aims to use funds to support growth ambitions.<\/p>\n

The post Coal miner TerraCom fires up A$63 million restructuring plan<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[419,404,369],"tags":[15],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1115477"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1115477"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1115477\/revisions"}],"predecessor-version":[{"id":1115513,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1115477\/revisions\/1115513"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1115477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1115477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1115477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}