Baralaba Coal Company (ASX:BCL)
has entered into a $12.5 million bridging loan, with major shareholders Liberty Metals & Mining Holdings (LMM).
The coal producer says funds will be used to meet its day-to-day cash requirements, and continue roadworks to restart its Baralaba North mine in central Queensland.
The company says the loan is to be repayable in full by 15 July 2017, with an interest rate of 12.5 per cent per annum, and a default interest rate of 16 per cent.
Baralaba Coal says the loan also includes an establishment fee of $375,000, which will be used by LMM to pay for ordinary shares in the company.
Shares in Baralaba Coal Company (ASX:BCL)
are trading 5.56 per cent lower to 51 cents.