Former Hunter billionaire Nathan Tinkler has made a takeover bid for a mine he used to own in the region.
On Monday, Australia Pacific Coal announced to the Australian Stock Exchange it had received a non-binding takeover bid from Mr Tinkler who has proposed buying 20 per cent of the Dartbrook mine project at Aberdeen in the Upper Hunter for $3.78 million, refinance the debt the company owes and then launch a takeover bid for the entire project at up to 30 cents per share.
Nathan Tinkler has been involved with the Dartbrook mine project before, he was financially involved with two other shareholders in 2015 when they bought the mine from previous owner Anglo American for $25 million plus royalties.
Anglo American had closed the mine in 2006 during a coal price slump and fatalities on the site and placed it into care and maintenance.
The now 46-year-old became Australia’s youngest billionaire at age 32 when he sold his share in Macarthur Coal. He funneled cash into horse racing and the two biggest sporting clubs in Newcastle, the Knights and the Newcastle Jets.
Eventually when the coal price tanked, Mr Tinkler ran out of cash and was declared bankrupt.
Mr Tinkler resigned from his directors role at Australia Pacific Coal in 2016 when he began a two-year bankruptcy.
Australia Pacific Coal have been trying to get the mine back up and running – in March this year the mine was granted a five-year extension entering into an agreement with the Minister for Planning and Public Spaces under Section 34 of the NSW Land and Environment Court Act 1979 which has provided the extension of mining operations under the development consent.
Mining was approved on the Kayuga seam using the first workings bord-and-pillar method.
In April, Trepang Services made their move to the company to buy the Dartbrook project.
On Monday a meeting with Trepang to finalise a possible agreement was postponed after Mr Tinkler put forward his proposal and interest in buying the project.
The company is now taking the time to consider the proposal.
Image: Jessica Rouse