Bens Creek has raised US$6.5mln through the issue of unsecured loan notes to Avani Resources, its largest shareholder.
The coal miner said the new loans would pay off an outstanding US$5.6mln debt to ACAM and provide some additional working capital.
Avani’s loan notes have a term of 18 months and interest will roll up and be repaid as a bullet at maturity.
Other terms are for Bens Creek to pay Avani US$2 per tonne of clean coal sold within 7 business days of a sale.
The coal payments will be applied to reduce the principal outstanding under the loan notes.
Any remaining principal and accrued interest will be repayable on the repayment date.
While the loan notes are outstanding, Bens Creek is not allowed to pay dividends and has hence postponed plans for a maiden payment.
Adam Wilson, Bens Creek chief executive, commented: "We are extremely pleased with the commitment and support of our new shareholder Avani.
“The provision of a further term non-convertible loan facility enables us to repay the current loan notes issued to ACAM, provides us with further working capital and ensures that we maintain a healthy financial position."