The company has entered into a convertible loan deed with John Robinson and Nick Paspaley, owners of AusPac cornerstone investor Trepang Services, for $10 million each and a coupon of 15% per annum.

The principal and interest will be converted into ordinary shares in AusPac at 1.5c per share, subject to shareholder approval at a meeting expected to be held in early May.

Trepang already holds 38.3% of the company.

Along with $4.5 million of cash reserves from AusPac, the funding satisfies the $24.5 million due to Anglo, to be held in escrow pending deal completion.

Tinkler said the company was encouraged to have raised the funds for the acquisition.

“Dartbrook is a high-quality asset and we look forward to progressing our plans further in consultation with the local community,” he said.

The deal remains subject to minority partner Marubeni Coal waiving its pre-emptive rights and releasing Anglo from further liabilities.

AusPac will also have to find a further $7.7 million to replace financial assurances in respect of the Dartbrook tenements.

The company said it was considering funding alternatives ahead of the completion of the deal.

Dartbrook, in the Hunter Valley, has been on care and maintenance since 2006.

AusPac is planning to convert it from an underground thermal coal mine to an open cut mine with a 20-year life.

Once in production, Anglo can receive up to $25 million in royalties.

The sale is part of Anglo’s divestment strategy to focus on its priority assets.

AusPac shares jumped more than 9% to 2.3c, more than doubling in the past two months.