Brisbane billionaire Chris Wallin and his QCoal Group pitch $85m rescue plan to save Bounty Mining

One of Australia’s wealthiest resources players is locked in a struggle to stop the collapse of a once-promising mining company with substantial assets in Queensland.

Craft brewer Scott Hargrave testing some beers. Picture: Jerad Williams

BILLIONAIRE’S PLAN

One of Australia’s wealthiest resources players is locked in a struggle to stop the collapse of a once-promising mining company with substantial assets in Queensland.

Low-profile Brisbane billionaire Chris Wallin (illustrated) and his QCoal Group have put forward an $85 million plan to recapitalise Bounty Mining, which has lost a huge pile of dough since floating last year and now faces a “material uncertainty’’ about its ability to survive.

It’s the third rescue scheme that Wallin has pitched since last month to Bounty, which until now has recommended that shareholders approve an alternative $71 million package proposed by its biggest investor, Amaroo Blackdown Investments.

Queensland billionaire Chris Wallin

In a statement to the ASX yesterday, Bounty said it was assessing the latest unsolicited QCoal offer, which would give it seats on the board and not require a vote by shareholders.

At the same time QCoal ramped up the pressure, alleging yesterday that Bounty had “misled its shareholders’’ by claiming the Amaroo proposal was the only feasible option on the table.

“Bounty has yet to engage with QCoal. Based on Bounty’s current disclosure, the market is not accurately informed,’’ it said.

“QCoal is very concerned that Bounty has asked shareholders to consider the Amaroo proposal based on incomplete and out-of date information.’’

Wallin’s company lobbed its first indicative and non-binding offer on August 27 and that was followed by a revised second plan on September 2.

Bounty considered these schemes inferior to the Amaroo plan but, in a move which has raised quite a few eyebrows, it failed to inform the market about the overtures until Sept 9.

QCoal has stressed that it commissioned an independent expert’s report which found its plan “superior,’’ at least in part because it would not dilute the stakes of existing shareholders.

Bounty investors are scheduled to vote on the Amaroo plan on September 30.

A STARK CONTRAST

The dire circumstances in which Bounty now finds itself in stands in stark contrast to the promise of its IPO, which saw it raise $18 million and float in June last year.

At the time it was the biggest coal company float in eight years and followed an earlier $17 million round of fundraising.

With Millennium Coal founder Gary Cochrane at the helm, Bounty focused on acquiring distressed assets in the Bowen and Laura basins.

The company picked up the Cook Colliery near Blackwater for $31.5 million, as well as other assets from Glencore for an additional $10 million.

But dramas with equipment, finance and falling coal prices exacted a huge toll and Cochrane quit in February after 10 years as chairman and CEO.

Bounty suffered a $34.4 million loss in the last financial year and $24.9 million in red ink in 2018. Negative cash flows amounted to $27.7 million in the year to June 30 and current liabilities have blown out to $35 million.

Shares, which were issued at 35 cents and have traded as high as 47 cents, now languish at a mere 7.9 cents.

Plenty of investors must be hoping that Wallin, a former government geologist now worth an estimated $2.1 billion, can turn things around.

A BIGGER CABINET

Scott Hargrave is going to need a bigger trophy cabinet.

The well-regarded brains behind the cracking beers from Gold Coast-based Balter Brewing picked up another gong at last night’s annual Beeries awards in Brisbane.

Hargrave was named “best brewer,’’ while Felons Brewing at Howard Smith Wharves took home the “best new venue’’ award. The gang from Your Mates Brewing Co won for “best new brewery’’.

Craft brewer Scott Hargrave testing some beers. Picture: Jerad Williams

More than 300 industry players attended the sold-out bash at the Royal International Convention Centre.

It came on the eve of the eco-friendly BeerInCider festival, which kicks off today at the RNA.

Organiser Marty Keetels is expecting 15,000 people over two days to enjoy some of the 330 beers and ciders, as well as food trucks and bands.