With $115 million cash in hand at the end of the June quarter versus only $66 million in June 2011, the Brisbane-based explorer outlined an intensified effort to realise its flagship project and become the country’s next coal producer.
Although Bandanna achieved a land-use agreement with the indigenous Karingbal people during the quarter, Springsure Creek experienced a setback last month when technical errors and deficiencies in the mining lease application resulted in a rejection of the plan by the mining registrar.
The company said it will reduce the size and extent of the mine plan and will continue negotiations regarding the project’s impact on area farms and homesteads.
Preparation and submission of the replacement mining lease is expected to be completed in the current quarter.
Ramped up drilling during the June quarter boosted the JORC-compliant reserve at Springsure Creek 50% to 153Mt of coal, underpinned by a total resource of 490Mt.
In early July, Bandanna financed continued development of the project with a $67.3 million bank guarantee from Credit Suisse.
The loan is intended to be used for the purchase of additional land and equipment.