Tuesday 3rd May 2011 1 Comment
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Australian company Bathurst Resources is buying more Buller Plateau coal assets in a conditional deal which the company says will complete the consolidation of its South Buller operation on the West Coast.
The company today also said it was to carry out a non-underwritten, institutional placement to raise about A$55 million (NZ$74.7 million).
Bathurst said it was buying the assets, which included permits covering an area of 341.6ha, from Robert Griffiths and an associated entity of his, Brookdale Mining.
The Brookdale assets were immediately above Bathurst's operating Cascade mine, and next to Bathurst's proposed Escarpment mine project.
Bathurst would pay for the Brookdale assets with US$12 million (NZ$14.9 million) in cash and 15 million shares. A life of mine royalty would be paid.
The land in the deal contained an exploration target of 15 to 25 million tonnes of coal, expected to be mostly hard or semi-soft coking coal.
It also included fully consented permits for two small underground operations, with the potential to be converted to open cast permits, Bathurst said.
There was a partially consented permit for one open cast operation, a permit to truck up to 250,000 tonnes a year of coal off the Buller Plateau, and a consented stockpile facility for up to 90,000 tonnes.
Under the placement, up to 52.4 million shares would be issued at A$1.05 per share.
Of the A$55 million raised, A$12 million would be used for the Brookdale acquisition and permits, A$10 million for drilling, development and other exploration, A$30 million for capital spending and development costs, A$3 million for working capital and transaction costs.
Bathurst shares, which closed at $1.64 on Friday, were in a trading halt until the outcome of the placement is announced.
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