- Tigers Realm Coal has secured nearly A$22 million in funding from two of its major shareholders, BV Mining and Dr Bruce Gray of Pine Ridge
- The funding comprises independent loan agreements in addition to loans already in place
- Tigers had a difficult September quarter for the 2020 financial year due to a decrease in international coal prices and higher freight rates – leading it to reduce its capital expenditure
- Financial assistance is vital for the company to continue its coal operations and plan future project works
- Tigers Realm Coal’s shares have significantly dropped 18.8 per cent, with shares trading at 2.6 cents
Tigers Realm Coal has secured A$21.8 million in funding with two of its major shareholders, BV Mining and Dr Bruce Gray (through Pine Ridge).
The funding includes independent loan agreements, which have been provided by each of the shareholders in addition to their existing loans advanced earlier this year.
“These funds will enable both operational continuity as well as facilitating the necessary project design work for the planned construction of a wash-plant to continue without interruption through into the calendar year 2020,” Tigers Chairman Craig Wiggill said.
During a difficult September quarter for the 2020 financial year, the company experienced revenue of nearly $9.2 million less than anticipated.
Tigers were largely affected by the decrease in internationally traded coal prices as well as the significant increase in freight rates.
Additionally, the company’s capital expenditure was reduced and focused on sustaining its operating capacity.
The new short-term funding package provides additional liquidity. Tigers are exploring longer term financing arrangements, including potential equity raising through a pro-rata entitlement offer to all shareholders.
The company hopes this will create a capital structure that’s more suitable and will update the market on its recapitalisation process in the next few weeks.
Tigers Realm Coal’s shares have significantly dropped 18.8 per cent, with shares trading at 2.6 cents as at 11:02 am AEDT.