Bandana Energy has sold its preference equity in WICET Holdings for US$ 47 million, increasing the company’s cash reserves to US$ 121 million. Part of the sale proceeds will be used in developing Bandana’s flagship Springsure Creek thermal coal project in Queensland.
The 11 million tpa Springsure Creek underground thermal coal project is scheduled to start production in mid-2015.
The sale of Bandana’s preference equity has provided a net gain of US$ 6 million. Part of the funds raised will be used for the approvals process that will lead to a Mining Lease at the Springsure Creek coal project.
Funds will also be used for acquiring land and compensation as well as developing a strategy for balancing mining activities with those of coal mining at the project.
Its initial investment of US$ 41 million in WICET was made to ensure the US$ 2.5 billion in project financing was secured for the construction of the port, which is critical for coal project proponents in the Bowen Basin. The port has reached over 60% completion at the time of writing.
Despite the sale of its preference equity, Bandanna will maintain its 14% shareholding in the Wiggins Island coal export terminal stage 1 at Gladstone and its 4 million tpa capacity allocation at the port.
It also has associated infrastructure capacity for integrated rail haulage of coal from the Springsure Creek project to the port in place.
The company is currently finalising its supplementary environmental impact statement and hopes the process will be finalised by the end of September 2013.
Adapted from press release by Samuel Dodson.
Read the article online at: https://www.worldcoal.com/coal/08072013/bandana_energy_to_invest_further_in_springsure_creek_thermal_coal_project_257/