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Pike River gets first $10 million away no trouble

Wednesday 21st April 2010

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Pike River Coal had "strong support" for the placement today of $10 million in new stock with institutional investors and cornerstone shareholders New Zealand Oil & Gas and Gujarat NRE of India.

The placement was the first leg of a $50 million capital-raising announced yesterday, and handled by lead managers UBS and McDouall Stuart Securities.  

Pike River shares have traded in a band between $1.12 and $1.16 on the NZX today, having closed at $1.10 before yesterday's trading halt and capital-raising announcements.

Settlement and issue of the new shares is scheduled for April 23.tment conditions.

NZOG and Gujarat took up entitlements in proportion to their current shareholdings.

Shareholder approval at a meeting on May 7 will be required to allow the remaining $40 million rights issue to proceed.

The company also advised amendments to the indicative timetable announced yesterday, with rights trading commencing on the ASX commences on April 23, record date of April 30, an opening date for the rights offer of May 3, with rights trading on the NZX that day also.  ASX rights trading will cease on May 12, and on the NZX on May 17, with a closing date of May 19.  New shares will be allotted on May 21.

A prospectus will be mailed to shareholders on May 3, and will be available on the company's website before then.

The capital injection will allow Pike River to ramp up its hydro-mining activity and begin large-scale production.

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