Shares in the mining and exploration company were soaring 10% higher earlier in the day, though started to tread lower from midday.

The S&P/ASX 200 Materials Index (ASX: XMJ) has also had a positive start to the week, up 0.6%.

Australian Pacific Coal's shares are faltering amid an update on its non-binding indicative proposal with Tetra Resources and Javelin Private Capital, originally announced on 14 September.

If it goes as planned, the proposal will see Tetra Resources and Australian Pacific Coal have a 40% and 60% split of the Dartbrook coal project. The agreement also involves a debt moratorium agreement with Australian Pacific Coal and its major shareholder, Trepang Services Pty Ltd, and a marketing agreement between Javelin and the joint venture participants.

Let's cover the highlights of what was announced today.

Trepang Services greenlights Dartbrook joint venture proposal

Australian Pacific Coal announced that Trepang Services has approved the proposal for its Dartbrook joint venture, which was one of the prerequisites for moving forward.

It was also announced that Trepang is ready to place a moratorium on Trepang's associates' (Trepang Parties') outstanding debts and that the debt funding will continue for Australian Pacific Coal.

One caveat for the debt moratorium is that the joint venture moves ahead as planned. Trepang will reportedly withdraw its moratorium offer and further debt funding if the agreement falls apart.

Australian Pacific Coal described the offer as "restrictive" and is currently weighing its options. The company notes that it believes progression with the Pacific Premium Coal proposal would be better for shareholders.

Australian Pacific Coal received an offer from Pacific Premium Coal on 7 September. The proposal would see approximately $100 million raised through a 5.83 for 1 pro-rata entitlement offer, with shares offered at 34 cents apiece.

What did management say?

The offer received from the Trepang Parties is therefore restrictive since it does not, amongst other things, provide the Company with the opportunity to consider all of the other proposals before it (including the Pacific Premium Coal proposal) which may be, if they were able to be progressed, in the best interests of shareholders.

The Company is currently considering its position with respect to the advice provided by the Trepang Parties. The Company also still awaits a formal response from the Trepang Parties regarding the Pacific Premium Coal proposal.

Australia Pacific also said:

The Board does have a general concern that the Tetra/Javelin Proposal would see the Company or its Dartbrook project being burdened with additional debt, without its existing debt being paid off first. The Company has engaged a third-party financial adviser who is assisting the Board in their independent assessment of proposals that have been received.

Another bid for its Dartbrook coal project was received on August 24, which was put forth by Naveko Pty Ltd. The offer included an equity subscription of 19.97% of Australian Pacific Coal's shares for a total of $3.78 million and a takeover bid for 30 cents per share.

Australian Pacific Coal share price snapshot

The Australian Pacific Coal share price is up 250% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 9.6% over the same period.

The company's market capitalisation is $31.3 million.

The post Here's why the Australian Pacific Coal share price is sinking 15% today appeared first on The Motley Fool Australia.

Yet shares in the microcap ASX coal miner remain up an eye-popping 331% since this time last month. Even more noteworthy for a month that saw the All Ordinaries Index (ASX: XAO) fall 4%.

So, what's going on?

What's driving ASX investor interest?

Australian Pacific began its near vertical ascent on 22 August, gaining 193% over the first two trading days of that week.

Now certainly, the ASX energy share has been a beneficiary of soaring coal prices. Newcastle coal has been trading near all-time highs, currently priced just north of US$444 per tonne.

But that's not what sent the Australian Pacific Coal share price through the roof.

That initial impetus looks to have been after Australian Pacific reported it had received a non-binding alternative proposal from Naveko Pty Ltd for the sale of its Dartbrook coal project, located in New South Wales.

The miner had previously received an offer for the asset in April from Trepang Services Pty Ltd.

In regards to the Naveko proposal, the miner said at the time that the offer was "conditional" requiring "further consideration".

The Australian Pacific Coal share price continued to climb over the month and again soared higher on Wednesday of this week, closing the day up 33%.

This came after the miner updated the market on its fully underwritten 5.83 for 1 renounceable entitlement offer. The company provided shareholders with the specific details in its entitlement offer booklet.

The miner also updated the market on its Dartbrook project, reporting it had entered into a non-binding agreement with M Resources Pty Ltd "with respect to a proposed 50:50 joint venture for the operation of the Dartbrook mine and for potential future mine management services at the Dartbrook mine".

Australian Pacific Coal share price snapshot

With shares having trended lower heading into August, the Australian Pacific Coal share price is 'only' up 229% in 2022. That compares to a year-to-date loss of 11% posted by the All Ordinaries.

The post Australian Pacific Coal share price soars 331% in a month. What's going on? appeared first on The Motley Fool Australia.

The impact on US markets carried over to the ASX session today, leading all sectors to finish in the red.

The S&P/ASX 200 Index (ASX: XJO) finished 2.58% lower on Wednesday.

Despite this, there were pockets of green scattered throughout the indices today, and these two ASX mining shares were standouts.

Australian Pacific Coal Ltd (ASX: AQC) 

Shares of the coal player launched to new highs today, gaining 55% at one stage during the session.

The spike followed the company releasing updated details of its 5.83 for 1 renounceable entitlement offer.

This was announced earlier in the month, with the company seeking to raise $100 million to ensure it can meet its debt obligations when they fall due, and for working capital.

We covered the full details on the company's capital raising earlier today here.

It seems investors were galvanised by the news and reacted swiftly. Australian Pacific shares closed 33.33% higher at 60 cents each.

This brings the share's gains to 300% for the year to date.

Itech Minerals Ltd (ASX: ITM)

Little-known ASX mining share Itech Minerals finished the day with a 14.7% gain after the company released an update on its Campoona Graphite deposit.

The company advised that, following its metallurgical program at the site, it has confirmed a high yield of 47% graphite of 99.99% purity after caustic baking and leach methods.

Speaking on the announcement, managing director Mike Schwarz said:

These results demonstrate that Campoona has the potential to produce a high value spherical graphite, from an Australian project in a State with significant production of renewable energy and excellent infrastructure. The use of non-HF methods such as caustic baking to purify the concentrate add further weight to the projects green credentials which we believe will help us produce a premium product for the renewable energy markets.

Shares of Itech have pushed 95% higher since listing in October 2021.

The post Here are 2 ASX mining shares that went absolutely gangbusters today appeared first on The Motley Fool Australia.

Whilst the bolus of the ASX is trading in the red today, Australian Pacific shares are up 28% following a company announcement.

What did Australian Pacific Coal announce?

The company provided an update on its fully underwritten 5.83 for 1 renounceable entitlement offer announced earlier this month.

It actually provided the entitlement offer booklet containing all of the issue's details for investor perusal as well.

There's a bit of background to the company's route to seed capital. First, it proposed to sell its Dartbrook coal mine in the Hunter Valley, NSW to Trepang Services Pty Ltd earlier this year.

This was made on the grounds that certain liabilities owed to Trepang would be repaid or dealt with.

However, Trepang pulled its deal as Australian Pacific purportedly couldn't get shareholder approval, or at least in time for Trepang's deadline.

Whilst doing its due diligence for the Trepang deal, however, the company's board noted there was no fallback plan in the event Trepang did pull out.

This created a dilemma for Australia Pacific, seeing as it still owes Trepang the debt, except had no means to service the liability.

Hence it announced the entitlement offer in order to raise $100 million to fully repay its debt to Trepang and also for additional working capital.

Clarity on Dartbrook

Investors appear to have bought in on clarity around the Dartbrook mine as well. Referring to progress here, Australia Pacific said:

In conjunction with the launch of the Entitlement Offer, the Company has entered into a non-binding agreement with M Resources Pty Ltd, an entity associated with Matthew Latimore, with respect to a proposed 50:50 joint venture for the operation of the Dartbrook mine and for potential future mine management services at the Dartbrook mine.

It did lay down a bed of caution, however:

Given the proposed arrangements with M Resources are currently non-binding and subject to ongoing due diligence, there is no guarantee that the partnership with M Resources will eventuate, and shareholders are cautioned against placing significant emphasis on any transaction with M Resources when subscribing for shares under the entitlement offer.

Meanwhile, the Australian Pacific Coal share price has surged more than 283% into the green this year to date.

The post Australian Pacific Coal share price surges 28% on takeover news appeared first on The Motley Fool Australia.

The Australian Pacific Coal Ltd (ASX: AQC) share price has soared 196.3% from 13.5 cents at market close on Friday to the current share price of 40 cents.

So why is this ASX energy share having such a good run this week?

What's going on with Australian Pacific Coal shares?

Investors have been buying up Australian Pacific Coal shares after the company announced news of a takeover bid.

Australian Pacific received a non-binding alternative proposal on the sale of its Dartbrook coal project in New South Wales from Naveko Pty Ltd.

The plan involves Naveko providing instant funding to Australian Pacific via an equity subscription for 19.97% of Australian Pacific shares for a total of $3.78 million. Nakevo is also proposing to make a takeover bid for Australian Pacific for up to 30 cents per share.

In April, the company received an offer from major shareholder and creditor Trepang Services Pty Ltd.

Nakevo's proposal, received on Friday, is still at an early stage. Australian Pacific said the offer is "conditional" and "requires further consideration".

Meanwhile, the outlook for the coal price could also be providing Australian Pacific with a boost.

In FY22 results released last week, ASX coal share Yancoal Australia Ltd (ASX: YAL) predicted thermal coal prices will remain elevated in 2023. Yancoal said:

Ongoing supply-side constraints and demand resulting from shortages and disruption to global energy markets should sustain elevated prices for seaborne thermal coal into 2023.

The coal price has soared more than 146% in a year, according to Trading Economics data.

Share price snapshot

This ASX energy share has surged 135% in the past year and 167% in the year to date.

In the past month, Australian Pacific shares have rocketed 281%.

Australian Pacific Coal has a market capitalisation of $20.2 million, based on the current share price.

The post Why has this ASX energy share surged 196% since the start of the week appeared first on The Motley Fool Australia.

In stark contrast to the All Ords, the Australian Pacific Coal Ltd (ASX: AQC) share price is on fire today. This coal share closed at 14 cents a share last week, but opened at 26 cents this morning, before dropping to the present price of 25 cents a share, up a pleasing 85.2%.

However, earlier this morning, the company touched 27 cents a share. That was a whopping 100% rise on last week's close at the time.

So what on earth is going on with Australian Pacific Coal that would elicit such a dramatic jump in valuation?

Why did this ASX coal share double in value today?

Well, it seems that an ASX announcement from Australian Pacific Coal this morning is responsible.

This morning, the company announced that it had received a "non–binding alternative proposal" for the sale of its Dartbrook Project from Nakevo Pty Ltd. Previously, the company had received an offer for Dartbrook from major shareholder and creditor Trepang Services Pty Ltd. 

Nakevo, a private company backed by former coal magnate Nathan Tinkler, proposes to provide "immediate funding to AQC by way of an equity subscription for 19.97% of the shares in AQC at $0.30 per share for a total of $3.78 million (less fees and expenses)."

Nakevo is also proposing to make a takeover bid for Australian Pacific Coal "for up to $0.30 per share, to allow existing shareholders to take the opportunity to liquidate their investment, should they wish to do so". 

Australian Pacific Coal has stated that "the Proposal is at an early stage, is conditional and requires further consideration. Shareholders are advised to take no action at this time."

However, investors certainly seem very excited by this latest development, considering what the Australian Pacific Coal share price has done today. No doubt this is a space well worth watching going forward.

At the current Australian Pacific Coal share price, this ASX coal share has a market capitalisation of $6.81 million.

The post Guess which little-known ASX coal share just rocketed 100% appeared first on The Motley Fool Australia.