Tinkler’s private company, Bentley and Trepan, in July had taken a 42.5% stake in the company by buying $6.6 million of new shares at 0.4c each through a placement.

“Australian Pacific Coal has a number of exciting projects adjacent to existing large-scale operations,” said Tinkler at the time of that deal. He had earlier decamped to Singapore after his mining and horse racing empire crumbled.

“We intend to expedite the progression of these projects following completion of the proposed transaction. Our aim is to create significant value for all shareholders, as these projects move forward from exploration to potentially production in the coming years.”

His return to running a coal mining company will be watched with interest as his track record in the past saw him become one of the nation’s youngest billionaires with the astute purchase of the Maules Creek mine from Rio Tinto in 2008.

Tinkler’s fees are to be indexed for inflation on the 1st January of each year commencing 1 January 2017, and to be reviewed in light of any increases in the market for similar positions held.

Tinkler or his nominee is eligible to receive any forms of equity type compensation as reasonably determined by the AusPac board from time to time.

Death and disability insurance will be provided and the consultant will be reimbursed for out of pocket expenses as well as costs pertaining to relevant trade shows, seminars, professional memberships, and continuing professional development together with incidental AusPac related business expenditure, the company said.

In other changes to the AusPac board, Peter Ziegler has been appointed chairman of the company.

AusPac will seek to develop a standalone open cut metallurgical coal mine at the Hillalong project area formerly subject to an option agreement with Rio Tinto.

Hillalong is located adjacent to Rio Tinto’s Hail Creek mine located approximately 120 km southwest of Mackay and 35km northwest of Nebo.