Funding secured by Coalfield Resources
COALFIELD Resources, the new name for UK Coal, is expected to undertake an equity fundraising this year to repay a vital bank loan.
Following the restructuring of UK Coal last December, the group now has two divisons covering mining and property.
Chairman Jonson Cox said: “Following the restructuring on 10 December 2012, Coalfield Resources plc no longer has operational responsibilities but is an active investor in Harworth Estates. The company also holds a residual minority investment in Mine Holdings.
“The restructuring effectively separates the Company and Harworth Estates from any liabilities associated with the defined benefits pension schemes.
“Harworth Estates continues to perform well. The major fire, and subsequent closure of Daw Mill Colliery in Warwickshire, has had a material impact on the mining business.
“The fire has also led to a potential short term funding requirement for the company as Mine Holdings resolves its issues following the closure of Daw Mill.
“In these circumstances, the company has sought to obtain a facility, secured against its shareholding in Harworth Estates, from its bankers. It is expected that this facility will be repaid through an equity fundraising during 2013.”
Mr Johnson added that the restructuring of the group helped put Harworth Estates, which owns and manages around 30,000 acreas of land and other property, and Mine Holdings on a more stable footing. Coalfield Resources has a near 25% stake in Harworth Estates.
“The fire at Daw Mill, and subsequent closure, has been a bitter blow for Mine Holdings but we understand the remaining mines continue to be viable,” he said.
“As an active investor in Harworth Estates, the company will continue to provide strong support to help ensure the on-going success of Harworth Estates.”
Mine Holdings remains the biggest producer of coal in the UK despite the closure of Daw Mill Colliery in March.
For the year ended December 29 2012, Coalfield Resources recorded a post-tax loss of £6.3m compared to a post-tax profit of £55.2m the previous year.