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Bathurst seeks further $6M from Aussie shareholders only

Thursday 12th September 2013

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Bathurst Resources is to raise a further A$5.4 million (NZ$6 million) from Australian shareholders not involved in the placement earlier this month with institutional and "sophisticated" investors, which raised $18.9 million.

However, its New Zealand retail shareholders won't get a look in, despite the company moving its headquarters to Wellington to reinforce its commitment to the local economy as it battles environmental objections to its plans to mine coking coal on the Denniston Plateau, above Westport.

"Given the high costs and regulatory impost associated with offering into jurisdictions outside Australia (including New Zealand), the size of the offer and the company's predominantly Australian shareholder base, the board has determined that it is not practical to make the offer to shareholders with a registered address outside Australia."

According to information released at the time of the placement, some 49 percent of Bathurst's register is held by retail investors, heavily weighted to Australia.

Details of the offer were released to the NZX and ASX this morning, with the issue pitched in Australian dollars to reflect the company's largely Australian shareholder base.

Bathurst appears close to securing resource consents which will allow it to start open cast mining on the Denniston Plateau, as appeals against consents granted in August 2011 appear likely to fail.

The High Court has indicated it is inclined to grant the consents, which have been contested vigorously by environmental groups, led by the Royal Forest & Bird Protection Society of New Zealand.

The issue of up to 34,962,400 new shares at 15.5 Australian cents a share represents a cap of 5 percent of the company's shares before the earlier placement, and is priced for equivalence with the placement's 18 New Zealand cents a share.

Eligible shareholders will be able to subscribe for a maximum of A$15,000 of new shares. The offer will open on Sept. 18 and close on Oct. 9, with allotment on Oct. 16. Bathurst shares continued to be quoted at 20 New Zealand cents on the NZX this morning.

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