Blair Athol mine owner TerraCom Resources has announced a $63 million restructuring plan.
TerraCom is launching a fully underwritten entitlement offer to raise about $35 million.
It has also entered a $28 million convertible bond with shareholder OCP Asia.
“The funds raised will significantly reduce the company’s cost of debt and provide vital leverage in the final negotiation of refinancing existing debt,” TerraCom chairman Wal King said.
“It will provide the company with expansion and business development opportunities with its new restructured balance sheet … 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.”
The company in March announced an upgrade to the JORC reserve at Blair Athol to 23.5Mt, extending the mine life by three years to about eight years at a production rate of about 3Mtpa.
Blair Athol, near Clermont, was brought back into production in 2017 after TerraCom bought the mothballed site from Blair Athol Coal Joint Venture for $1.