Sharechat Logo

Bathurst raises A$7.93 million in discounted placement to help fund Escarpment mine

Wednesday 16th April 2014

Text too small?

Bathurst Resources raised A$7.39 million in a discounted placement to institutional investors to help fund development of its Escarpment open-cut coal mine on the Denniston Plateau near Westport.

The Wellington-based mining company sold about 123 million shares at 6 Australian cents, or 6.5 New Zealand cents apiece. The stock dropped 7.3 percent to 7.6 cents after trading resumed on the NZX today, having been halted for the placement.

Managing director Hamish Bohannan said the company is mulling an offer of "a small entitlement issue" for its existing shareholders at a ratio not more than one for 10 and would make an announcement on that soon.

"The company has recently announced initiatives to preserve cash while we await our final authority to commence operations at Escarpment," he said. "The proceeds of this placement will be used for working capital for the initial development phase of the project so we can move quickly into full commercial production once international coal prices recover."

In February, the company said it would cut 29 jobs in response to the lowest world prices for coking coal in the past nine years. Bathurst won resource consents for Escarpment near Westport last October, more than two years after initial consents were appealed by environmental groups. In the meantime, prices slumped to the extent that there would be no margin in extracting coal from the new mine.

 

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

UPDATE: Mercury earnings fall less than expected on geothermal offset
Napier Port jumps 12% on NZX debut following oversubscribed public offer
Moody's sees pressure on NZ banks' profitability
Competition watchdog proposes breaking wholesale stranglehold on petrol supply
FIRST CUT: Mercury earnings fall less than expected on geothermal offset
Comvita says KPMG's audit delays reporting of annual results
20th August 2019 Morning Report
NZ dollar drifts lower as greenback gains; focus on Jackson Hole
Nib NZ has risk and culture review on the radar
MARKET CLOSE: NZ shares gain as tweaked earnings outlooks boost A2, weigh on Fletcher

IRG See IRG research reports