As per the agreed terms, Corsa Coal will raise $40m in funding aside from acquiring Quintana subsidiary Kopper Glo.
Quintana will additionally secure a controlling stake of 56% in Corsa Coal and a redeemable 25% interest in its subsidiary Wilson Creek.
Corsa Coal will privately place 60.2 million common shares to secure $10m funding aside from agreeing to place a further 176.5 million common shares to raise $30m.
Corsa Coal president and CEO Don Charter said that the agreement with Quintana marks an essential step in company’s plan to claim its position as a significant metallurgic coal supplier in global market.
"With the new capital provided, reduction in debt, immediate cash flow and quality coal together with the involvement and support of Quintana with its experience and expertise in coal, Corsa is well positioned to continue with its sales and production growth and the development of its mining projects," added Charter.
The company noted that the proceeds from the second tranche of the funds will be used to repay the $25m debt owed to Sprott Lending alongside facilitating working capital.
"In addition, Corsa has agreed to pay a termination fee to Quintana of US$2.0 million upon the occurrence of certain events," concluded Corsa.
