Australian Pacific Coal's completion of institutional equity raising

Australian Pacific Coal Limited (ASX:AQC) has successfully completed the Institutional Placement and Institutional Component of the Accelerated Non-Renounceable Entitlement Offer, raising an aggregate of approximately A$16.5 million. The Equity Raising was strongly supported by existing shareholders, including the Company's largest shareholder Trepang Services Pty Ltd, which has committed to subscribe for up to A$6.0 million in the Equity Raising. The retail component of the Entitlement Offer to raise approximately A$3.5 million is anticipated to open on Wednesday 9 October 2024.

Executive commentary on institutional equity raising

Australian Pacific Coal's Managing Director & CEO, Ms Ayten Saridas, expressed satisfaction with the completion of the Placement and Institutional Entitlement Offer, stating, 'With the Placement and Institutional Entitlement Offer completed, the Dartbrook Mine is now fully funded. The upsized US$90 million Senior Debt Facility, together with the backstop A$20 million Subordinated Facility, is expected to provide Dartbrook with sufficient funding to meet its capex, working capital and contingency requirements through the ramp-up phase, into commercial production and beyond.' Ms Saridas further emphasized, 'Over the past 18 months, we have systematically derisked this project and delivered on our promises of fully remediating the underground operations and successfully producing coal to the surface. With the completion of this capital raising, including the upsizing of the Senior Debt Facility, we have delivered another critical milestone which is to secure the full funding package.'

Summary of Australian Pacific Coal's institutional equity raising

Australian Pacific Coal Limited (ASX:AQC) has successfully completed the Institutional Placement and Institutional Component of the Accelerated Non-Renounceable Entitlement Offer, raising approximately A$16.5 million. The Equity Raising received strong support from existing institutional and sophisticated shareholders and has given the company the opportunity to introduce new institutions to the register. The proceeds from the Equity Raising will be used to satisfy AQC's 50% share of the A$20 million Subordinated Facility, meet general working capital requirements, and cover the fees associated with the Equity Raising. The retail component of the Entitlement Offer is expected to open on Wednesday 9 October 2024 and will raise approximately A$3.5 million in additional funds. Australian Pacific Coal's focus is now on working with the Operator to ensure Dartbrook returns to commercial production before the end of 2024, as the company aims to bring a world-class mine back into production after 18 years of care and maintenance.