Bowen Secures Debt Financing

PERTH (miningweekly.com) – ASX-listed Bowen Coking Coal secured $55 million in debt financing from Taurus Mining Finance Fund No. 2 shortly after mining began at its surface mine in Bluff, Queensland.

It is proposed that the new credit facility contemplated by the mandated documentation be secured first ranking with an aggregate limit of $55 million, and the facility will be used for capital expenditures, general working capital and expenses incurred for the recommissioning of the Burton Coal Handling and Preparation Plant (CHPP), developing the Burton and Broadmeadow East projects and operating the Bluff mine.

It is proposed that the facility be structured as an amortizing term loan with an initial term of 18 months. Bowen Coking Coal told shareholders the facility offers no financial maintenance clause, giving the company financial flexibility as it ramps up production from its development assets.

It is proposed that the facility will have an 8% coupon rate, royalties associated with the sale of coal production from Bluff and the Burton complex, and set-up fees customary for a facility of this nature.

“The new credit facility will provide Bowen Coking Coal with an accelerated path to develop its coking coal assets in the northern Bowen Basin, including the Burton Complex, following the successful start of mining at Bluff earlier in the year. month,” said executive chairman Nick Jorss.

“Funding to refurbish the CHPP will allow us to unlock significant value at the Burton mine which we are acquiring for near-term start-up. The centralized CHPP will have a total processing capacity of up to five million tonnes per year and will provide us with an ideal location to wash coal from our other nearby coking coal projects.

“Taurus has a strong track record of supporting Bowen Basin miners and we welcome them as funding partners for Bowen’s exciting projects.”

Completion of financing is subject to final credit approval, including satisfaction of material commercial conditions precedent and completion of detailed documentation.

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